In Australia and the Consolidated Press Holdings Proprietary Limited (CPHPL) vehicle of billionaire businessman James Packer has reportedly severed its boardroom ties with prominent casino operator Crown Resorts Limited.
According to a Tuesday report from the Australian Broadcasting Corporation, the investments enterprise holds a preeminent 36% stake in the casino firm although it has now nevertheless terminated the consultancy contract it held with Crown Resorts Limited non-executive director John Poynton.
The broadcaster reported that Poynton was the last remaining CPHPL appointee left on the board of Crown Resorts Limited following the Tuesday resignations of fellow non-executive directors Guy Jalland and Michael Johnston. Although the experienced businessman is to remain on the Sydney-listed casino firm’s board, the move purportedly means that its largest shareholder now effectively has no direct representation.
The Australian Broadcasting Corporation reported that CPHPL’s blow came only hours after a special inquiry being conducted by former New South Wales Supreme Court Judge Patricia Bergin had determined that the Melbourne-headquartered casino firm was currently unfit to hold a gambling license for its Crown Sydney development. This decision is purportedly now headed to the New South Wales Independent Liquor and Gaming Authority with its release having immediately sent the value of individual shares in Crown Resorts Limited down by some 9%.
Philip Crawford (pictured) leads the New South Wales Independent Liquor and Gaming Authority and he reportedly told the broadcaster in advance of yesterday’s Johnston and Jalland resignations that Crown Resorts Limited would have to ‘blow itself up to save itself.’ When subsequently informed about the departures, he purportedly proclaimed that ‘somebody is listening to us and that’s really positive’ as the moves are destined to send ‘a big message to me and the media.’
The Premier of New South Wales, Gladys Berejiklian, reportedly pronounced that the findings of the Bergin inquiry had been direct, thorough and clear and that she was now prepared to wait for specific recommendations and advice from the New South Wales Independent Liquor and Gaming Authority before proceeding further.
Berejiklian reportedly told the broadcaster…
“It’s all there in black and white and I’m sure both Crown Resorts Limited and any other organization will read that report carefully and accept what action has to occur before anybody is able to have a licence in New South Wales. Anybody who wants to operate a casino in New South Wales has to stick to the rules, has to stick to the law. The government doesn’t apologize for upholding those high standards.”