Billionaire Packer’s Crown buys Nobu stake for USD100m

James Packer listens during a news conference at the Studio City opening

Crown Resorts Ltd., the Australian casino group controlled by billionaire James Packer, bought a 20 percent stake in Nobu for USD100 million to extend its relationship with the global restaurant and hotel company.
The other 80 percent will continue to be held by existing owners and entities associated with Nobu Matsuhisa, Robert De Niro and Meir Teper, Crown said in a statement. Packer will be nominated to join the Nobu board as one of four directors.
The up-market Japanese eatery has outlets in Crown’s casino complexes in Melbourne and Perth and there is a Nobu Hotel at the City of Dreams in Manila, owned by Melco Crown Entertainment Ltd., according to the statement. Melco Crown this week opened the Hollywood-themed USD3.2 billion Studio City resort in Macau, which features a Batman ride and a 400-foot Ferris wheel. The opening was attended by De Niro, Leonardo DiCaprio and Martin Scorsese.
“We see the Nobu brand as complementary to Crown Resorts’ global luxury entertainment positioning and the Nobu business has an attractive near-term growth profile, with a number of new restaurant and hotel openings planned,” Crown Chairman Rob Rankin said in the statement.
Moody’s Investors Service said in a statement yesterday that the transaction is credit negative for Crown Resorts, citing an additional financial commitment at a time when the company has an “extensive pipeline of projects” to be undertaken over the next four years. Moody’s said the investment has no immediate impact on the company’s ratings.
Crown Resorts’ shares fell 1.7 percent to A$11.47 yesterday, bringing their decline for the year to 9.6 percent.
Packer, Australia’s third-­richest man who stepped down as chairman of Crown in August, is focusing on developing the group’s resorts, which include a planned casino in Las Vegas and a hotel for high-rollers on Sydney Harbour. He also holds an interest in movie-production company Ratpac with filmmaker Brett Ratner. Brett Foley, Bloomberg