Ashurst advises Crown Resorts in the A$1.9bn sell-down of interests in Melco Crown Entertainment

The 198 million MCE shares (equivalent to 66 million MCE American Depository Shares (ADSs) or 13.4% of MCE shares outstanding) were sold to Melco Leisure and Entertainment Group Limited, a subsidiary of Melco.

The transaction closed on 16 February 2017, and has reduced Crown's shareholding to 11.2% of MCE shares. 

The transaction follows Crown's underwritten sale of 40.9 million MCE shares (equivalent to approximately 13.6 million MCE ADSs and approximately 2.8% of MCE shares outstanding) for US$5.33 per MCE share (equivalent to US$16 per MCE ADS), completed on 20 December 2016.

In conjunction with the underwritten sale, Crown also entered into an economic hedge, by way of cash settled equity swaps, over 81.9 million MCE shares (equivalent to 27.3 million MCE ADSs and just over 5.5% of MCE shares outstanding) for US$5.33 per MCE share (equivalent to US$16 per MCE ADS).