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Crown Casino Shares Suspended Amid Construction Contract Concerns

Strategic Insights

— 1 min read

Crown Casino's shares have been suspended by the Australian Stock Exchange (ASX) due to concerns over the costing and design of the expanded casino project, which has blown out the overall cost by more than $200 million to $970 million. The suspension, made on Friday afternoon, is pending clarification of the changes in the construction contracts. The casino's chairman, Lloyd Williams, has assured that Crown will abide by the exchange's rules and provide the necessary information to facilitate a relisting as soon as possible.

Key Takeaways:

  • The Australian Stock Exchange (ASX) has suspended the trading of Crown Casino's shares pending clarification of changes in the costing and design of the expanded casino project.
  • The project's cost has blown out by more than $200 million to $970 million, raising concerns about the construction contracts.
  • The ASX is seeking more costs information from Crown, including details of whether the project was based on a fixed-price and time contract, and provided for damages if work was not completed on time.
  • Crown Casino's chairman, Lloyd Williams, has assured that the company will abide by the exchange's rules and provide the necessary information to facilitate a relisting as soon as possible.
  • The suspension, made on Friday afternoon, is conditional on Crown providing the ASX with the information it has requested, and a resumption of trading is expected on Tuesday.
  • The Treasurer, Mr Stockdale, has stated that the suspension is not a matter for the State Government, but rather a reporting requirement.

Statistics:

  • The cost of the expanded casino project has blown out by more than $200 million to $970 million.
  • The ASX has suspended the trading of Crown Casino's shares pending clarification of changes in the costing and design of the expanded casino project.
  • A resumption of trading is expected on Tuesday, conditional on Crown providing the ASX with the necessary information.
  • The ASX is seeking more costs information from Crown, including details of whether the project was based on a fixed-price and time contract, and provided for damages if work was not completed on time.

Sources:

  • The Australian Stock Exchange (ASX)
  • The Australian Financial Review - "Crown Casino shares suspended amid construction contract concerns"
  • The Herald Sun - "Crown Casino shares suspended due to construction contract concerns"
  • AFR.com - "Crown Casino shares suspendised due to construction contract concerns"

Photo credit: The Herald Sun

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