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Must-Know: Melco Crown’s Major Shareholders

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Management stake

Before investing in Melco Crown Entertainment (MPEL), an investor needs to know whether the company’s management is committed to its future by owning its shares. Members of management owning shares of their company shows confidence in the firm’s direction and outlook.

The above table shows the beneficial ownership of MPEL’s ordinary shares as of April 3, 2014. Each entity listed is known to the company as a beneficial owner of 5% or more of its share capital.

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Lawrence Ho

Lawrence Yau Lung Ho is the cochairman, CEO, and executive director of Melco Crown Entertainment. He personally holds 20,512,612 ordinary shares of the company, including shares through companies owned by persons and trusts affiliated with him. Plus, he and his immediate family members have interest in MPEL through a discretionary family trust. In all, he beneficially owns ~48.77% of MPEL.

Crown Asia Investments

Crown Asia Investments refers to Crown Asia Investments Pty. Ltd., formerly known as PBL Asia Investments Limited. It is 100% indirectly owned by Crown Resorts Limited, which is listed on the Australian Stock Exchange. As of April 3, 2014, Crown was ~50% owned by Consolidated Press Holdings Group, which is a group of companies owned by the Packer family.

James Douglas Packer, chairman of Consolidated Press Holdings, is also cochairman and nonexecutive director of MPEL. As of June 30, 2014, the major shareholders of the company are Melco International Development and Crown Resorts, or Crown.

Peer inside ownership

Companies such as Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN) have insider ownership of around 50%, 19%, and 20%, respectively. However, Caesars Entertainment (CZR) has insider ownership of ~1%.

A good way to minimize the risk of investing in a single casino company is to maintain a diversified portfolio in these companies through ETFs such as the VanEck Vectors Gaming ETF (BJK).

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