Online Stockmarket Trading Update

Millennium Gaming and an affiliate of Oaktree Capital Management, L.P. (collectively, the “Sellers”) and Crown Limited (CWN) terminated the Cannery Purchase Agreement which was entered into in December 2007.  The parties recognised that the preconditions to completion would not be satisfied in time to allow the purchase as proposed to proceed.  A termination fee of US$50 million, due under the Cannery Purchase Agreement, has been paid by Crown to the Sellers. 

Crown and the Sellers have also entered into further binding commitments in relation to Cannery.  In summary, Crown will pay US$370 million for an approximate 24.5% equity interest in Cannery in a two step regulatory process and will have an option to acquire the balance of the equity interests on a debt free basis for approximately US$1.4 billion exercisable at any time over the next 2 years but each of the two transactions is subject to regulatory approval. If the regulatory approval for issue of the preferred instrument is not received within the timeframes set out above, Crown will have paid a total termination fee of US$250 million and have paid US$40 million for an approximate 4.1% preferred interest in Cannery. 

http://www.crownlimited.com