Packer deals minority Crown shareholders a losing hand

A private baccarat table in the high roller room at Crown Casino.

James Packer has collected $1.8 billion from the sale of 20 per cent of Crown but in the process has virtually killed the chance of any takeover premium in the stock.

The sale, at $13 a share, comes just two months after speculation Steve Wynn would buy Packer’s stake at $14.75 a share.

This tells you he had other motivations for selling almost half his stake in the company.

Just where he plans to invest the funds is not known.

He has effectively abandoned the interests of minority shareholders but, then again, those still in the stock yesterday have only themselves to blame and can’t hold Packer to account.

Crown shares have not been a stellar performer in the last five years, underperforming the market on a total return basis by some 42 percentage points, with an increase of just 14 per cent against the market at 56 per cent.

The stated reason for selling the shares was to focus on other activities which of course is absolutely his prerogative.

Minority shares in the Packer-controlled company were also in the stock with their eyes wide open knowing their fortunes were subject to his whims.

This one will not please anyone outside the Melco camp given they have acquired 20 per cent of the company at pretty close to market price.

The deal was done in-house, with no external bankers used and in-house lawyer Guy Jalland in Australia to handle the transfer.

Packer will retail a 26 per cent stake, valued at $2.3bn, so obviously has a keen interest in where it goes from here.

His sale comes as his Barrangaroo development in Sydney, one of his finest achievements, is coming to fruition.