Melco’s Lawrence Ho intends to build on Crown stake bought from James Packer

Lawrence Ho says he wants more of Crown than the 19.9 per cent stake he’s buying from James Packer.

Lawrence Ho and James Packer in 2013. .

Melco Resorts & Entertainment chairman Lawrence Ho has confirmed his plan to increase his stake in Crown Resorts after taking a 19.9 per cent stake in the Australian casino company.

Mr Ho told Bloomberg in a TV interview on Friday that it would be his “wish and goal” to take his holding further.

Melco spent $1.76 billion buying the stake from James Packer’s private investment vehicle Consolidated Press Holdings, leaving the Australian billionaire with a 26 per cent interest in Crown.

Mr Ho noted regulatory approvals would be needed to increase his stake. But he also said he had been through Australian probity and regulatory approvals when he and Mr Packer first established the Melco Crown partnership back in 2004. That partnership ended in 2017 when Mr Packer sold out of the venture.

“It is time to go through all of that (regulatory approvals) again and there are some additional Australian foreign investment rules that we need to go through,” Mr Ho said.

“That regulatory process probably takes 12 months or so.”

Mr Ho said he was not aware that Mr Packer was looking to sell down his Crown stake until news broke last month that he was in talks with Las Vegas casino giant Wynn.

Those talks ended when Wynn walked away after the deal was leaked to media.

“As a friend, I called to see how he was doing, following the way the transaction was announced and then abruptly ended,” Mr Ho said.

He said he believed that Crown had some of the greatest gaming assets globally. Mr Ho said he became interested in engaging once he knew of Mr Packer’s intentions.

“Melco has always been a company that has been going global and we have always had global aspirations,” He said. “We just have never found assets that were at our level in terms of premium and these assets fit perfectly,” he said.

Mr Ho said the two organisations had similar DNA, pointing to their previous 12 year partnership.

He added that the Crown deal could help Melco’s chances of securing a casino licence in Japan.

“Part of the reason we like Australia so much is the fact they are known to have world class regulators and the strictest compliance and governance. So from that standpoint that will be great for our Japanese bid as well,” Mr Ho said.

“Japan is the final frontier in terms of global gaming and entertainment businesses. The Crown purchase improves our chances in Japan given Australia is known to have great governance and at the same time, Melbourne is a great case study for urban revitalisation.”