Crown Resorts shares survived the news of chairman James Packer’s departure from the board for the second time in just over two years.
The shares ended down 0.9% at $12.95, above the day’s low of $12.83.
Mr Packer resigned for what the casino operator says are “personal reasons”.
Packer first quit the board in December 2015, but rejoined (http://www.abc.net.au/news/2015-12-21/james-packer-resigns-from-crown-board/7045056). He rejoined the board in January 2017 as the company’s financial performance worsened, staff were arrested in China and the group underwent a radical revamp of its board with the then chair resigning and packer loyalist, John Alexander being elevated to the chairmanship.
At the same time a radical cost (and personnel) cutting program started and prosecuted with vigour and Packer’s approval (he controls 47% of Crown resorts) by Alexander in what was a repeat of what happened at the Nine Network in the early 2000’s when it was controlled by Kerry Packer.
Crown Resorts did not offer any further explanation but media reports suggested there were “mental health” reasons. The Australian Financial Review quoted a spokesman for Packer’s private company, Consolidated Press Holdings, saying that Packer is “suffering from mental health issues”.
“Mr Packer is suffering from mental health issues,” a spokesman for his private investment company Consolidated Press Holdings said. “At this time he intends to step back from all commitments.” “We have appreciated James’ contribution to the board and respect his decision to step down from his role as a director at this time," Crown executive chairman John Alexander said in a brief statement.
The Packer-controlled Consolidated Press Holdings is Crown’s largest shareholder, with 47.2% shareholding at the end of last month.
