Packer snaps up another 3 per cent of Crown Resorts to push holdings to 53 per cent

Billionaire tightens his grip on gaming empire in weeks after opening new casino in Macau.

James Packer and Mariah Carey pose together at the opening of Studio City.

Billionaire James Packer has pounced on another 3 per cent of Crown Resorts in a deal executed by UBS. The trade was executed at $12 per share.

Mr Packer is using the creep rules, which allow investors to accumulate an additional 3 per cent every 6 months, to expand his presence on the register.

The latest deal will see Mr Packer’s private holding in Crown moves to 53 per cent.

The acquisition came as gaming numbers in Macau fell in the first full week of the operations of James Packer’s new casino, Studio City, with analysts warning the trend is weak and below expectations.

CLSA’s Sacha Krien said the Macau weekly numbers, out last night, look weak despite last week’s opening of Studio City.

James Packer’s Crown Resorts (CWN) owns a 34 per cent stake in Studio City operator Melco Crown Entertainment.

“Melco Crown Entertainment’s shares are down 7 per cent, Crown also likely to be weaker on the news,” Mr Krien said.

Shares in Crown were today down 2.38 per cent at $11.47, in an Australian market down 1.2 per cent.

“It is only eight days and luck may be a factor, but this does undermine the thesis that new casinos will grow the market,” Mr Krien said.

“In terms of market share Melco Crown got a smaller than expected boost from Macau Studio City.”

The average daily revenue in the first eight days of the month was $HK481 million, which was down on the $HK554m in the final six days of October.

The run rate for November so far was $HK15.4bn, which was down 21 per cent month-on-month and a decline of 35 per cent year-on-year.

Mr Krien said his expectations of a 23 per cent drop year-on-year in November now looked “optimistic”.