James Packer sells half his stake in Crown to Melco

James Packer has sold almost half his stake in Crown Resorts for more than a billion dollars to a Macau-based entertainment company.

Billionaire James Packer has sold almost half of his stake in Crown Resorts for $1.76 billion to a Macau-based entertainment company.

Consolidated Press Holdings, Mr Packer’s private investment company, confirmed on Thursday night that it had sold 19.99 per cent of its shareholding in Crown Resorts to Melco Resorts and Entertainment.

It was sold for an aggregate purchase price of $1.76 billion, equivalent to $13 per share.

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James Packer's health looks on the improve as he takes a stroll in LA showing off his distinct weight loss just yesterday. Picture: Diimex

Once the share sale is completed, CPH will own about 26 per cent of Crown, worth about $2.3 billion, and will remain represented on the Crown board. Mr Packer said Crown was a stronger company with Melco as a strategic shareholder.

“Crown has been a massive part of my life for the last 20 years and that absolutely remains the case today — my continuing Crown shareholding represents my single largest investment,” Mr Packer said of the deal.

James Packer at the Crown Casino in Melbourne.

The model of Crown Resorts' One Barangaroo casino, hotel and apartment tower. Picture: Hollie Adams

“I am still vitally interested in Crown’s success as a world-class resort and gaming business. The sale allows me to continue my long term involvement with Crown and at the same time to better diversify my investment portfolio.”

CPH will lodge a Notice of Change in Substantial Holding both with Crown and the Australian Securities Exchange.

In recent years, Crown has been forced to deal with plunging profits, business expansion problems and the arrest of more than a dozen of its employees in China for the illegal promotion of gambling.

Steve Wynn and James Packer in Macau in 2006. Photo: SCMP

The deal comes a month after merger talks between Crown and Las Vegas casino giant Wynn Resorts broke down.

Steve Wynn reportedly pulled the plug on the $7.1 billion ($A10 billion) deal, after news of talks between the two were publicised.

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After the Australian Financial Review revealed Wynn’s takeover approach, Crown not only confirmed the confidential talks, but also disclosed the price that Wynn was offering.

The deal would have meant a $US4.7 billion payout for Packer.

He would have ended up as Wynn’s biggest shareholder with 9.8 per cent of its shares, based on its current number of shares on issue.

James Packer had a bad break up with Mariah Carey. Picture: Supplied

It’s been a tough few years for Packer. In 2018, the son of the late publishing and gaming mogul Kerry Packer, abruptly departed the family firm, citing “mental health issues.”

He also spent time at an ultra-exclusive $35,000-a-week, 11-bedroom facility in Boston described as “the real deal” for “people who can spare no expense”.Packer was also struggling after a highly publicised split from singer Mariah Carey, whom he was engaged to.

The Crown development in Sydney. Picture: AFP

Packer reportedly paid Carey a $US50 million ($A70 million) “inconvenience fee” after the breakup and let her keep her massive multimillion-dollar engagement ring after she claimed she had to cancel a tour to be with him.

Previously, Packer was married to designer Jodhi Meares for two years. The couple split in 2002 but have remained friendly.

James Packer with his kids and ex-wife Erica in 2017. Picture: Instagram

Packer’s marriage to model Erica Baxter lasted longer and produced three children, Indigo, Jackson and Emmanuelle. The couple separated in 2013 after six years of marriage when Baxter relocated permanently to Los Angeles. Packer has since spent more time in the US to be closer to his children.

In recent years, Packer has spent significant chunks of time away from Australia.

He was most recently back in Sydney to attend the funeral of his friend and former personal chef, Justin Bull, who died in February.

Originally published as James Packer sells half his stake in Crown to Melco