Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

MAJOR TRANSACTION

TERMINATION OF PURCHASE OF

SECOND TRANCHE SHARES

IN CROWN RESORTS LIMITED

BY A LISTED SUBSIDIARY

- MELCO RESORTS & ENTERTAINMENT LIMITED

References are made to (i) the announcement of the Company dated 30 May 2019 (the "30 May Announcement") in relation to the major transaction relating to purchase of 19.99% interest in Crown Resorts Limited by Melco Resorts & Entertainment Limited (or its nominee); (ii) the announcement of the Company dated 28 August 2019 in relation to the amendment deed to the Share Sale Agreement; and (iii) the circular of the Company dated 25 October 2019 containing further information relating to the Transaction and other information required by the Listing Rules. Capitalized terms used in this announcement shall have the same meanings as those defined in the 30 May Announcement unless otherwise stated.

The Board announces that, on 6 February 2020, CPH and Melco Resorts have agreed to terminate the obligation to purchase the Second Tranche Shares, representing approximately 9.99% of the issued share capital of Crown Resorts, under the Share Sale Agreement (as amended on 28 August 2019) (the "Termination"). As a result of the Termination, while Melco Resorts currently holds 67,675,000 shares of Crown Resorts, representing approximately 9.99% of the issued share capital of Crown Resorts, it will no longer acquire the additional 67,675,000 shares of Crown Resorts (also representing approximately 9.99% of the issued share capital of Crown Resorts) originally agreed to be acquired under the Share Sale Agreement, being the Second Tranche Shares. Melco Resorts does not currently intend to increase its existing shareholding in Crown Resorts from its current position. Melco Resorts also does not intend to seek representation on Crown Resorts' board of directors.

1

REASON FOR THE TERMINATION

In its Form 6-K dated 6 February 2020 furnished by Melco Resorts with the United States Securities and Exchange Commission, Melco Resorts announced that due to the impact of the coronavirus epidemic, including the severe drop in tourism in Asia to integrated resort facilities in the region, and the recent decision by the government of the Macau Special Administrative Region of the People's Republic of China to close all casinos in Macau, Melco Resorts has taken the decision to reassess all non-core investments to be made in 2020.

This decision reflects Melco Resorts' 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 Resorts considers its core operations to be those businesses where it is the managing and majority shareholder. This includes operations in Macau, the Philippines, and Cyprus and its efforts to obtain a license to operate a Melco Resorts-owned integrated resort in Japan.

Melco Resorts intends to continue its operations in these jurisdictions and carry out key investments currently earmarked for Macau, Manila, Cyprus, and Japan, including the construction of Studio City phase 2 and City of Dreams Mediterranean. Management attention of Melco Resorts will remain focused on these critical areas of Melco Resorts' business until such time as operations and business throughout Asia have returned to normal.

For the above reasons, Melco Resorts decided not to pursue its planned investment in Australia for the Second Tranche Shares. While Melco Resorts believes Crown Resorts has world-class assets that are complementary to its global business, it is Melco Resorts' belief that, at this time, its capital needs to be deployed on its core assets.

By Order of the Board of

Melco International Development Limited

Leung Hoi Wai, Vincent

Company Secretary

Hong Kong, 6 February 2020

As at the date of this announcement, the Board comprises three Executive Directors, namely Mr. Ho, Lawrence Yau Lung (Chairman and Chief Executive Officer), Mr. Evan Andrew Winkler (President and Managing Director) and Mr. Chung Yuk Man, Clarence; two Non- executive Directors, namely Mr. Tsui Che Yin, Frank and Mr. Ng Ching Wo; and three Independent Non-executive Directors, namely Mr. John William Crawford, Mr. Chow Kwong Fai, Edward and Ms. Karuna Evelyne Shinsho.

2

Attachments

  • Original document
  • Permalink

Disclaimer

Melco International Development Limited published this content on 06 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 February 2020 12:07:04 UTC