Investment firm proposes to buy back James Packer’s stake in Crown Resorts

A global investment firm has proposed a multi-billion-dollar deal that could push billionaire James Packer out of Crown Resorts.

An investment firm has pledged to fund a buyout of James Packer’s stake in Crown Resorts, potentially paving a way for the casino giant to obtain its Sydney gaming licence.

Crown acknowledged that it had received a “non-binding and indicative” proposal from Oaktree Investments to fund a buy back of shares owned by the billionaire’s private company Consolidated Press Holdings (CPH).

Oaktree’s proposal details an investment funding of nearly $3bn to Crown in order to buy back “some or all” of the shares held by CPH.

James Packer’s private company is the majority shareholder in Crown. Picture: Supplied

Oaktree would “provide a funding commitment of up to $A3bn to Crown via a structured instrument, with the proceeds to be used by Crown to buy back some or all of the Crown shares which are held by CPH on a selective basis …”

CPH holds a share ownership in Crown of about 37 per cent, making Mr Packer the largest investor in the nation’s largest gaming group.

Mr Packer’s influence over the Crown board as majority shareholder has been scrutinised by a NSW probe into the casino that determined the company was not suitable to hold a gaming licence in the state because of evidence of mismanagement and money laundering.

The NSW probe found Crown Sydney was not suitable to hold a gaming licence. Picture John Grainger

Findings from the NSW Independent Liquor and Gaming Authority inquiry also found Mr Packer was not a suitable person to be associated with the casino.

Commissioner Patricia Bergin SC said Mr Packer’s influence would hinder the company’s ability to gain approval to open the gaming floor of its $2.2bn Barangaroo casino in Sydney.

Crown said the board was yet to form a view on Oaktree’s proposal but was assessing the potential deal.

A buyback would be need to be approved by Crown shareholders.