Shares in Crown Resorts fell by as much as 10% at one stage after it emerged from a trading halt yesterday, following the release of the damning Bergin report on Tuesday.
But those hoping for a more detailed statement from Crown were disappointed – only a brief one paragraph release at 10.19am to announce that two of the three Packer nominated directors, Guy Jalland and Michael Johnston, had resigned.
There was no explanation as to why, but James Packer told some media outlets that he wanted to remove all 3 of his nominees and had achieved this with two resignations and the switch of Perth broker and businessman, John Poynton from being a Packer man to an independent by terminating his consultancy deal.
Packer’s statement was silent on the question of his 36% shareholding which will have to be sold or reduced to perhaps 10% with no board representation if Crown is to have a future in the Barangaroo Casino project.
But the statement, from his private company, CPH did say “The issue of CPH’s representation on the Crown board, and future communications between those representatives and CPH, were potentially complex matters for ILGA [the Independent Liquor & Gaming Authority) and Crown to resolve,” according to Fairfax Media.
“The steps announced today take them off the table, giving Crown’s board clear air to work with ILGA in the execution of its announced reform agenda and become a model casino operator. CPH supports these efforts.”
News of the resignations came as NSW Independent Liquor & Gaming Authority chair Philip Crawford told a Sydey media conference yesterday that: “I think that one of you had a headline in your report last night about Crown needing to blow itself up to save itself. That’s probably pretty close to the mark. It needs a lot of change.”
Mr Crawford welcomed the CPH resignations. “That’s great news,” he said. “That means that somebody is listening to us. And that’s really positive – that answers a few questions… they were CPH appointees on the board, and that’s a big step.”
Commissioner Bergin said in her final report it was unlikely Crown could ever be considered suitable to open its $2.2 billion casino at Barangaroo while the long-time Packer family lieutenant Mr Johnston remained involved, in light of how his dual loyalties created conflicts of interest and blurred reporting lines.
Ms Bergin also said in her report that Crown CEO Ken Barton (and long-time CFO) and independent director Andrew Demetriou (a former AFL boss) would have to go as well.
The stock closed down a little over 3% to $9.81.
