I understand why there are so many WOW words written and said about Mr. James Packer. Wealth has that impact.
However, let us not yet go overboard. It was his daddy that built up the fortune in true tycoon style. His son has inherited but not yet shown he is his father´s son.
Indeed, his recent media deal shows that James Packer is still only a small chip off daddy´s block.
This is the deal where he, and presumably his advisors, decided to raise cash in order to invest, primarily in his gambling businesses.
So what he did was separate his media business into a separate company and indebted this company significantly and, with the cash raised, paid himself a big dividend.
Just like daddy would have done........so far so good.
Then he goes and transfers 50% of the media business to a private equity firm, who are expected to pay a nominal equity sum.
They presented this deal as a sale of 50% of the media business to a private equity firm and having a private equity presence in the company means that the business will be managed much more aggressively and profitably. Raising the debt of the media business is the first step to managing the business more aggressively and profitably, in true private equity style. Sounds a lot better.
If he wanted to have private equity involvement, he didn´t need to give away half of the business AND raise the debt of the company as well.
Daddy must have turned in his grave when he read about this deal.
Onésimo Alvarez-Moro
See article:
So do James Packer and friends have the elusive "wow factor"?
The press attention devoted to the Packers suggests the Australian media thinks so, but in the next month it's not local editors his consortium needs to amaze but a faceless committee of Singapore bureaucrats.
They'll decide in December if they should hand Packer's Eighth Wonder consortium approval for a $5 billion super-casino in the buttoned-up island state, which they want to be a world-class draw to rival the Sydney Opera House for tourist dazzle and reinvent Singapore's staid image.
The plan Eighth Wonder submitted is studded with features designed to drop Singaporean jaws. But will a Deepak Chopra wellness centre and a Pele-endorsed soccer stadium be enough?
See full Article.
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