|
Packer's actions as Crown's largest shareholder are being
scrutinised as the New South Wales state government holds an
inquiry to decide if the company should be allowed to go ahead
with its A$2.2 billion ($1.6 billion) casino tower in Sydney
just months before its scheduled opening.
Under questioning, Packer acknowledged the company he founded
agreed not to give Hong Kong casino magnate Ho or his associates
any beneficial interest in Crown Resorts when it obtained
clearance in 2014 to build the 75-floor tower.
However, Packer announced a sale last year of one-fifth of Crown
to Melco Resorts & Entertainment Ltd <MLCO.O>, a company run by
Ho's son Lawrence. On Wednesday, Packer said he assumed his
lawyers would pick up any legal issues.
"I forgot, Mr Bell," Packer told the lawyer leading the inquiry,
Adam Bell. "I thought the legal work that the CPH team ... were
preparing would cover all eventualities," he said, referring to
his private company Consolidated Press Holdings.
Ho, who died in May aged 98, was banned from any involvement in
Australian casinos amid widespread reports alleging links to
organised crime, which he denied.
Melco ultimately bought half of the 20% Crown stake Packer had
put up for sale - and subsequently sold it - and cancelled plans
to buy the other half.
TURMOIL
Packer's evidence also covered a period when 16 staff were
jailed in China in 2016 for violating anti-gambling laws,
prompting an exit from foreign markets, while Packer himself
stepped back from public view for personal reasons.
Testifying via videolink, Packer acknowledged requesting
frequent trading updates at least from November 2018 through
February 2019 and giving orders about the running of Crown
despite holding no board or operational role since March 2018.
In a 2019 email read out by the inquiry, in the months before
the Melco sale announcement, Packer wrote to then chief
financial officer Ken Barton, "you have had your heads in the
sands this year. Make sure, for your own sake, we achieve the
financial year 2020 plan".
Packer denied the email was a threat and said, as a large
shareholder, "I was under the impression that I could
communicate the way I was communicating."
"I believed that I was fully aligned with Crown Resorts
shareholders and that my requests were in all shareholders' best
interests."
In a November 2018 email to Crown's then chairman John Alexander
read out to the inquiry, Packer gave permission for Alexander to
cut costs and wrote, "I'm over being Captain Good Guy to
everyone. Go hard, you have my blessing."
Packer continues giving evidence on Thursday.
(Reporting by Byron Kaye; Editing by Christopher Cushing)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
