Las Vegas Sands (LVS) announced on Wednesday that it had agreed to sell its properties in Las Vegas for about $ 6.25 billion, while focusing its focus on its operations in Asia. The LVS stock rose.
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Apollo Global Management (APO) will acquire Las Vegas properties and real estate 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 credit agreement and term loan guarantee. Meanwhile, VICI Properties will acquire subsidiaries that own The Venetian’s real estate and property-related assets for approximately $ 4 billion in cash.
Prior to his death on January 11, Las Vegas Sands founder and CEO, Sheldon Adelson, had discussed the sale of Las Vegas properties. Covid’s mandatory closings, which decimated Las Vegas casinos with reduced travel and hotel occupations, may have accelerated plans.
“Asia remains the backbone of this company and our developments in Macau and Singapore are the center of our attention,” said President and CEO Robert Goldstein 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 enhanced through this transaction.”
Despite the name, most of Las Vegas Sands’ revenue comes from Macau for several years.
CEO Goldstein said there are still “potential development opportunities in the domestic market”. Las Vegas Sands has been lobbying New York and Texas lawmakers to allow casinos in their states. The company also plans to expand into online gambling, added COO Dumont.
LVS stock
The shares rose 2.3% to 66.45 in the stock market today. LVS shares left a flat base with a buying point of 60.98 on February 22, according to analysis by the MarketSmith chart. The shares are extended beyond the 5% purchase range.
The Las Vegas Sands’ relative strength line has been trending upwards recently. As Covid-19 infections subside and more people receive vaccines, there is hope that casinos will be reopened more completely.
Among other casino and gambling actions, MGM Resorts (MGM) rose 1.8%, Caesars Entertainment (CZR) increased by 2.4%, Bally’s (BALY) fell 0.4%. DraftKings (DKNG) reversed from a record high to trade down 2.1%. Penn National Gaming (PENN) fell 3.2%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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