Crown still in dark about China arrests

Crown Resorts says its priority is helping 18 employees held in China and their families, while DFAT staff will meet three Australians among them on Friday.

The Crown Casino

Crown Resorts plans to spin off a minority stake in some of its Australian hotels and properties. (AAP)

Crown Resorts chairman Robert Rankin says the casino giant will review the circumstances around the arrest of 18 employees in China but has defended the company's record operating overseas.

The multibillion dollar gaming company held its annual general meeting in Perth on Thursday, three days after news of the arrests broke.

Major shareholder James Packer did not attend.

Three Australians including senior executive and father of two Jason O'Connor are among those currently in a Chinese prison.

Mr Rankin said at the AGM that Crown had not received any communication from China but the Department of Foreign Affairs and Trade has confirmed Australian government officials will visit the Australian employees on Friday.

DFAT officials had previously seen two of the workers but will gain access to the third for the first time on Friday.

The Crown employees were detained in China last week but no details have been officially released and no charges have been laid.

Mr Rankin said he was happy with the support offered by DFAT as it tried to obtain more information, understand the reasons for the detentions - and ultimately to resolve the crisis.

"Given the current lack of information available, it is not possible for anyone to be able to provide any informed commentary on these detentions," he said.

"Our number one priority is to provide them (staff) and their families with all the support we can at this difficult time."

One shareholder, Tsung Chang, asked if the Crown board would seek advice on whether the arrests could have been prevented, and whether anything risky or improper in terms of corporate governance had occurred.

"Of course we will look into it; now is not the day, time or place unfortunately given the stage we are at in a difficult, complex matter," Mr Rankin said.

"We have a proud compliance track record operating in a number of jurisdictions overseas."

Mr Rankin acknowledged the employees had been detained in a foreign country and were subject to its legal system, but said they were entitled to a presumption of innocence.

Crown said a quarter of its revenue came from international VIP gamblers in 2015/16, and less than half of that VIP revenue came from Chinese high rollers.

"The contribution to Crown Group profits attributable to the international VIP gaming program play business from mainland China visitors is substantially less than 12 per cent," the company said in a statement.

Chief executive Rowen Craigie said it was "too premature and speculative" to talk about any long term business impact from the detentions.

There has been comment that China's anti-corruption drive will damage international business for casino operators such as Crown, but Mr Craigie said he agreed with analysts who said that risk was overstated.

In an update on trading from July to mid-October, Mr Craigie said turnover generated by Crown's VIP high-rolling gambling business in Melbourne and Perth had been softer than the prior year, although this was not related to the detentions.

Crown also announced on Thursday that it plans to offload a 49 per cent stake in some of its Australian hotels and retail properties in a stock market float.

Crown shares fell 25 cents to $10.75 on Thursday, their lowest level since December.


Share
3 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world
Crown still in dark about China arrests | SBS News