Having been criticised by some analysts as paying over the odds to Wynn Resorts for a Macau concession, today Australia’s Publishing & Broadcasting Limited (PBL) has announced changes to PBL’s Board of Directors. Two long-serving members of the Board of Directors, Mr Robert White and Sir Laurence Muir, have resigned and been replaced by Chris Mackay and Chris Corrigan as non-executive directors.

Chris Mackay will continue with his role as a senior advisor to UBS Investment Bank Australia but is stepping down as Chairman of UBS Investment Bank Australasia. He has 18 years experience as an investment banker and is a member of the Business Council of Australia and a Director of the International Banks & Securities Association.

Chris Corrigan is the Managing Director of Patrick Corporation Limited, the largest stevedore company in Australia with interests in both rail and domestic aviation transportation as well as international sea-based trade through Patrick terminals. He has previously been Managing Director of Bankers Trust in Australia and for the Asia/Pacific region.

Subject to approval from the Macau Government, Monday’s announcement of the sub concession purchased from Wynn Resorts to own and operate hotel casino resorts in the Macau Special Administrative Region will cost the PBL/Melco International joint venture US$900 million. PBL will have a 60% stake and fund US$240 million with Melco International holding the other 40% for US$160 million. The remaining US$500 million will be funded by bank loans.

The sub concession, valid until June 2022, acquired from Wynn Resorts is the last one available in Macau. The heads of PBL and Melco International, James Packer and Lawrence Ho, have agreed that the joint venture will now share 50:50 all projects in Macau and Asia. Sociedade de Jogos de Macau SA (SJM) has waived all rights to the joint venture projects Crown Macau and City of Dreams, a fact that has led regulators in Australia to say that consequently investigations into the PBL/Melco International partnership will be speedier.

Since PBL entered the gaming industry with its 1999 purchase of Crown Casino in Melbourne, gaming operations have become around half the company’s annual earnings. Kerry Packer initiated the push onto the international gaming scene and his son James is continuing that course. According to the credit agency Fitch Ratings, PBL remains with a stable outlook. (E-03.08.06)

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