James Packer sells $450m in Crown Resorts shares

James Packer has moved to cut debt and restructure the capital position of his private firm by offloading Crown shares.

James Packer last year concluded a $1.25 billion settlement with his sister Gretel Packer, pictured.

James Packer has moved to reduce debt and restructure the capital position of his flagship private company with the sale of around $450 million worth of shares in the listed Crown Resorts.

Consolidated Press Holdings yesterday sold 35 million Crown Resorts (CWN) shares at $12.80 to institutional investors via UBS. The sale price was a 5 per cent discount to Crown’s closing price on Friday.

The sale of the 4.8 per cent stake took CPH’s share in Crown to 48.2 per cent.

Under the ASX creep provisions, CPH is able to buy a further 3 per cent stake in Crown every six months, so the sale leaves it only one creep away from a majority holding.

In a letter to Crown, CPH’s legal counsel Catherine Davies says the sale was part of “CPH’s financing and capital management strategy”.

“CPH remains deeply committed to Crown Resorts and is excited about the future of the company.” She added that CPH remained supportive of Crown’s demerger plans.

Crown shares were 24 cents lower at $13.28 at 2.06pm (AEST).

The sale follows a review of CPH’s capital position following Mr Packer’s $1.25 billion settlement last year with his sister Gretel Packer.

In February Ms Packer emerged from negotiations with her brother with stakes in the listed Crown Resorts, American listed online real estate business Zillow, cash holdings and some interest in CPH.

She also took a quarter share of what was her father’s beloved Ellerston property in the NSW Hunter Valley.

Under the original 2015 deal, Ms Packer, who has three children, had been entitled to a series of large cash payments from her brother, as well as retaining a residual interest in Mr Packer’s CPH, which holds his 53 per cent Crown stake and a range of other investments.

James Packer is understood to have taken on some debt last year to conclude the settlement with his sister.

At the same time Crown Resorts is currently pursuing a demerger of its operations. One company will hold its stake in Asian gaming company Melco Crown and some other international assets, while the other will house Crown’s Australian casino businesses