Alexander offloads half Crown stake for $2.5m
In a notice filed with the exchange on Christmas Eve, Mr Alexander revealed he sold about 249,500 Crown shares on December 19.
The move lends weight to speculation that Mr Alexander, a long-time lieutenant to the Packer dynasty, is to return to the organisation where he began his career, Fairfax Media, as a director or chairman of the board.
Mr Alexander's sale came on the same day as the Crown chairman, James Packer, waded into the market on a two-day buying spree that pushed his stake in the company from 48.09 per cent to 50.01 per cent, Bloomberg data reveals.
Mr Packer, who announced his move on December 20, spent $144.5 million to buy 13.9 million shares through his companies Consolidated Press Holdings and Cairnton Holdings.
Creep provisions in Australian law allow Mr Packer to increase his shareholding up to 3 per cent every six months without launching a takeover bid for the company.
He completed his exit from the media business run by his late father Kerry, selling his remaining stake in Consolidated Media to News Limited for $2 billion last month.
Mr Alexander has played down talk he is set to return to Fairfax, publisher of BusinessDay, telling The Australian last month he had held "zero conversations with anybody at Fairfax".
However, he added: "I can't say what will happen in the future. I'd be open to looking at anything. I have an open mind."
Crown shares rose 6¢ on Thursday to close at $10.56.
Frequently Asked Questions about this Article…
John Alexander, a non-executive director of Crown, sold half of his shareholding in the casino group — about 249,500 Crown shares — in a trade dated December 19, with a notice filed on Christmas Eve.
According to the notice, Mr Alexander’s sale of roughly 249,500 Crown shares netted him about $2.56 million.
Yes. James Packer carried out a two-day buying spree that increased his stake in Crown from 48.09% to 50.01%. He spent about $144.5 million to buy 13.9 million shares through his companies Consolidated Press Holdings and Cairnton Holdings, announcing the move on December 20.
The article explains that Australian 'creep provisions' allow a major shareholder like James Packer to increase their holding by up to 3% every six months without having to launch a formal takeover bid for the company.
The sale fuelled speculation that Mr Alexander might return to Fairfax Media as a director or chairman, but Alexander downplayed those reports, saying he had held 'zero conversations with anybody at Fairfax' while adding he has an 'open mind' about the future.
Following the trades, Crown shares rose six cents and closed at $10.56, according to the article.
James Packer bought the 13.9 million Crown shares through his companies Consolidated Press Holdings and Cairnton Holdings, as reported in the article.
The article highlights two key points for investors: a senior director sold a significant parcel of Crown shares while the major shareholder increased control, and that these moves can prompt speculation about board or management changes. It’s a reminder to watch major shareholder activity and company announcements, since such trades can influence investor sentiment and share-price movements.
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