Coronavirus halts Melco investment

Melco Resorts and Entertainment is to halt its purchase of the remaining shares in Crown Holdings, citing the outbreak of the coronavirus.

Melco stated that the impact of the epidemic, which has seen a severe drop in tourists visiting integrated resorts in Asia and the closure of all Macau casinos, has led to a decision to put the brakes on non-core investments to be made in 2020.

Following termination of the agreement to buy the remaining 50 per cent of shares in Crown, Melco stated that it does not seek to increase its existing shareholding nor seek representation on Crown’s board.

“This decision reflects Melco’s commitment towards its employees, customers, business partners and other stakeholders and observance of the highest degree of responsibility until such time as the global health emergency and the related travel restrictions that affect a significant part of its customer base are lifted,” Melco stated.

The company considers its core operations to cover Macau, the Philippines and Cyprus, while efforts to obtain a licence operate a Melco-owned IR in Japan are unaffected.

Melco’s statement follows its 11th-hour lawsuit in an attempt to block evidence gathering powers of the New South Wales regulator during its inquiry into the company’s purchase of Crown Resort shares.