James Packer’s stake in beleaguered casino giant Crown Resorts could be slashed if a bold $12bn proposal to merge with rival Star Entertainment Group gets the tick of approval.
Under Star’s proposal announced on Monday, the billionaire’s shareholding in the potential new entity would be limited to 10 per cent, down from the 37 per cent stake currently held by his private investment vehicle Consolidated Press Holdings.
The conditional, non-binding, indicative proposal is conditional on: “Agreeing with Consolidated Press Holdings … and relevant gaming authorities appropriate undertakings in relation to any CPH shareholding in MergeCo above The Star’s shareholder cap of 10 per cent”.
Camera IconUnder the proposal, James Packer’s share would be limited to 10 per cent. Aaron Francis/The Australian Credit: News Corp Australia
Mr Packer’s influence over the board – despite quitting it in 2018 – was labelled “disastrous” in findings from last year’s New South Wales Independent Liquor and Gaming Authority probe.
The inquiry deemed Crown not fit to hold a gaming licence for its epic new complex at Barangaroo in Sydney and also came to the conclusion the reclusive businessman was an unsuitable person to be associated with the company…