James Packer has sold almost half his stake in Crown Resorts for $1.76bn to a Hong Kong-based entertainment company.

Consolidated Press Holdings, Packer’s private investment company, confirmed on Thursday night it had sold 19.99% of its shareholding in Crown Resorts to Melco Resorts and Entertainment. It was sold for an aggregate purchase price of $1.76bn, equivalent to $13 a share.

Once the share sale is completed, CPH will own about 26% of Crown, worth about $2.3bn, and will remain represented on the Crown board.

Packer said Crown was a stronger company with Melco as a strategic shareholder. “Crown has been a massive part of my life for the last 20 years and that absolutely remains the case today – my continuing Crown shareholding represents my single largest investment,” he said of the deal.

“I am still vitally interested in Crown’s success as a world-class resort and gaming business. The sale allows me to continue my long-term involvement with Crown and at the same time to better diversify my investment portfolio.”

Melco’s chief executive, Lawrence Ho, said the stake was a great opportunity for his company, which operates casinos across Asia, including in Macau and the Philippines.

“It is certainly our intention to continue if the opportunity arises to increase our stake in Crown,” Ho said.

CPH will lodge a notice of change in substantial holding with Crown and the Australian Securities Exchange.

– with Reuters