Australian casino operator Crown confident in Macau's outlook

MPEL is also developing the City of Dreams casino resort at Cotai in Macau. MPEL's major shareholders are Crown and the Hong Kong-listed Melco International Development Ltd (Melco).

Crown said on Wednesday that it had agreed to take us$ 45 million in additional equity in MPEL's us$ 165 million equity placement. The placement may rise to us$ 180 million if an over allotment option is exercised. Melco has participated in the MPEL placement on the same terms as Crown.

Crown said the cost of its cash equity investment in MPEL, including the new shares, was now us$ 500 million. Following the MPEL placement and assuming full exercise of the over allotment option, Crown's ownership interest in MPEL will be diluted slightly to 36.4 per cent.

"The substantial participation in this transaction by the founding shareholders of the company - Melco International and Crown Ltd - confirms our confidence in the growth outlook for Macau and Melco Crown Entertainment's competitive position within the market," Crown executive chairman James Packer, who is also co-chairman of MPEL, said. "I am convinced that City of Dreams will set a new standard for casino development in Asia."

MPEL said that City of Dreams remained on track to open in early June and was on budget. Crown shares were three cents higher at us$ 4.56 on Wednesday.