Shares fall as James Packer steps down from Crown Resorts due to mental health issues
THE market has reacted to James Packer’s call to step down as a director of Crown Resorts due to mental health issues, with shares dropping as the news spread.
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CROWN Resorts shares have fallen following James Packer’s decision to step down as a director due to “mental health issues”.
The shares were trading at $12.89 at midday, down 1.38 per cent as news of Mr Packer’s decision hit the market.
The billionaire is understood to be in the US as he continues to focus on his recovery.
It’s understood he was putting his health before his casino empire.
A statement from Mr Packer’s private business, Consolidated Press Holdings, said: “Mr Packer is suffering from mental health issues. At this time he intends to step back from all commitments”.
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Crown Resorts executive chairman John Alexander said: “We have appreciated James’s contribution to the Board and respect his decision to step down from his role as director at this time”.
Crown has endured a tumultuous period, with the casino group pulling out of its Chinese operations after 16 staff were arrested in a gambling crackdown.
And Mr Packer has sold off land in Las Vegas that was set to house a new Crown hotel, with the company focusing on its Australian operations.
He also sold online bookmaker Crownbet to major shareholder Matt Tripp for $150 million this year ahead of a new tax on the sector.
Mr Packer’s private life has also been difficult after the breakdown of his engagement to singer Mariah Carey.
There were reports last year he had asked Ms Carey to return her $13 million engagement ring while he was photographed with his new girlfriend, US model Kylie Lim in Aspen.
But Crown Resorts will continue to push ahead with plans for a new six-star hotel to be built next to its Melbourne casino, despite Mr Packer’s decision to step down.
The tower, which would become Australia’s tallest building, has already won government approval.
His new Sydney casino at Barangaroo will continue to move towards a 2021 opening, the company also confirmed.
Packer has previously spoken about his battles with depression.
He revealed movie star Tom Cruise had helped him overcome his problems.
“When I was at my lowest, Tom Cruise reached out to me. He believed in me when other people didn’t,” Mr Packer said in 2013.
Mr Packer has a reported net worth of $3.9 billion, making him one of the top ten wealthiest Australians.
He is the son of the late media mogul Kerry Packer, who died in 2005.
Mr Packer has also battled depression after the collapse of One. Tel, a telecommunications company that collapsed in 2001.
He was one of the major backers of the company, which was then Australia’s fourth largest telco and his marriage to model Jodhi Meares was in turmoil.
“You can understand that, it was a lot of money and I was leading it,” he said.
“My marriage had broken up.”
He said at the time he was “depressed and emotionally exhausted”.
He later married Erica Baxter, but the couple separated in 2013.
Despite the split, the pair was photographed with their children, Indigo, Jackson and Emmanuelle together at Christmas last year.
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