Ending the long-term global gaming partnership:Crown Resorts Ltd (ASX: CWN) grabbed the spotlight on May 09, 2017 as the group announced for selling the remainder stake in Melco Crown Entertainment for $1.34 billion. Crown’s wholly owned subsidiary, Crown Asia Investments Pty Ltd ("CAI"), has entered into an agreement with Melco Resorts & Entertainment Limited for the repurchase of its remaining interest in Melco Resorts. Under the agreement, 165.3 million Melco Resorts ordinary shares (equivalent to about 55.1 million Melco Resorts American Depository Shares (ADSs) and representing 11.2 per cent of Melco Resorts ordinary shares outstanding) are to be sold for a price of US$7.04 per Melco Resorts ordinary share (equivalent to US$21.11 per Melco Resorts ADS). The sale of shares indicates that Crown and Melco will no longer be working together on new casino developments in Japan.

In order to bring the focus back to Australia, the group aims to direct the proceeds from the sale of the 11.2 per cent stake primarily to reduce Crown Resorts’ net debt and to focus on projects at home (including new projects in Sydney and Perth). Earlier, the group sold off 13.4 per cent stake in Melco raising $1.6 billion; and with this latest move, the group will completely exit from Melco. In last six months, CWN stock surged up 24.6% (as at May 08, 2017) and moved up 1.68% on May 09, 2017. The stocks plunged heavily the day CWN revealed about its executives’ arrests in October 2016; and the latest developments have, in a way, helped the stock recover from the pit.

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