Australia’s Richest Man Loses £1 Bi

November 9, 2009

Casino mogul and one-time richest man in Australia, James Packer, might not hold the top spot as Australia’s richest man for long. Packer, son of legendary media tycoon Kerry Packer who willed AUS$5 Billion to James upon his death four years ago, is probably best known for his bet on gaming business, Crown, which started trading in December 2007.

Since then, Packer has purchased 3% of the Crown shares, in order to increase his ownership to more than 40%. However, so far the odds of Packer winning this bet look slim with Packer paying AUS$205 Million ($187 Million). Not only that, recent market carnage hasn’t helped the matter, and Packer has fallen prey to the current global recession. In June 2009, it was reported that Crown had lost AUS$1.2 Billion for that financial year when they decreased their equity investments in gaming Operators, Station Casinos Inc., Harrah’s Entertainment Inc., Canner Casino Resorts LLC, and Fontainebleau Resorts LLC.. Shares in crown fell to 60% in past year on top of $290 million of writedowns forced by losses at Las Vegas casinos. Family’s financial firm, Challenger Financial Services Group, suffered writedowns to the tune of $145 Million and a 64% decline in stock price. The stake in Consolidated Media Holdings shrank by two-thirds. Packer has resorted to liquidating several assets, including his luxury yacht and his stake in the family cattle farm, for a reported AUS$425 Million.

These asset sales give Packer the flexibilty to increase his stake in Crown after six months, afterwhich time, Packer intends to increase his focus on gaming and casinos, which, we understand, are very high on his priority list. We hope things look up for Packer, because with his personal wealth being halved since taking over the family business, with Crown’s revnue falling by 2.2% to AUS$8.99 in Sydney trading, and with ill-timed acquisition initiatives of late, Packer still has so much to look forward to, especially his new-born daughter, Indigo, who he and model wife, Erica, welcomed into their lives in July of this year.

Not many people in the gaming industry have as much money as Packer does, and according to Harry Theodore, an analyst at Royal Bank of Scotland Group Plc, Crown “has the potential to provide substantial growth opportunities” in this current recessive environment.

We tip our hats to you Packer and wish you and your family success in the coming years.

Written by admin · Filed Under General News 
Tagged:

Comments

Got something to say?

You must be logged in to post a comment.