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Las Vegas Sands (LVS) announced on Wednesday that it had agreed to sell its properties in Las Vegas for around $ 6.25 billion as it focused on its operations in Asia. LVS stock rose.
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Global management of Apollo (APO) will acquire Las Vegas real estate and operations including the Venetian Resort Las Vegas and the Sands Expo and Convention Center for approximately $ 1.05 billion in cash and $ 1.2 billion in seller financing in the form of a loan to term and a guarantee contract. Meanwhile, VICI Properties will acquire subsidiaries that own the real estate and real estate assets of The Venetian for approximately $ 4 billion in cash.
Prior to his death on Jan. 11, Las Vegas Sands founder and CEO Sheldon Adelson had discussed the sale of Las Vegas properties. Closures imposed by Covid, which decimated Las Vegas casinos with reduced travel and hotel occupancy, may have accelerated plans.
“Asia remains the backbone of this company, and our developments in Macau and Singapore are the center of our attention,” Chairman and CEO Robert Goldstein said in a press release.
COO Patrick Dumont added: “Our long-standing strategy of reinvesting in our Asian operations and returning capital to our shareholders will be strengthened through this transaction.”
Despite its name, the majority of Las Vegas Sands’ income has come from Macau for several years.
CEO Goldstein said there are still “potential development opportunities at the national level”. Las Vegas Sands lobbied lawmakers in New York and Texas to allow casinos in their states. The company also plans to expand into online gaming, COO Dumont added.
LVS share
The shares rose 2.3% to 66.45 on the stock exchange today. LVS stock broke flat with a buy point of 60.98 on February 22, according to MarketSmith chart analysis. Shares are extended beyond the 5% buy range.
The Las Vegas Sands’ line of relative strength has been on the rise lately. As Covid-19 infections decline and more people get vaccinated, there is hope for casinos to reopen more fully.
Among other casino and gambling stocks, MGM Resorts (MGM) climbed 1.8%, Caesars Entertainment (CZR) increased by 2.4%, Bally’s (BALY) fell 0.4%. DraftKings (DKNG) fell from a record low to a decline of 2.1%. Penn National Gaming (PENN) was down 3.2%.
Please follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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