Las Vegas Sands increases its stake in Sands China
Analysts say the US-based gambling empire’s move shows the high level of confidence that it has for its Macao-based subsidiary.
Las Vegas Sands (LVS) has expanded its shareholding in Sands China through the purchase of 1.19 percent of the company’s issued stocks, which have a total value of HK$1.95 billion (US$250 million).
According to a regulatory announcement made by the Macao-based subsidiary yesterday, LVS purchased roughly 96 million shares at HK$20.20 each. The American parent company currently owns about 70 percent of Sands China.
Experts view this purchase positively, with gaming specialist publication GGRAsia quoting J.P. Morgan analyst, D.S. Kim, who said “the news signals strong confidence … from management, which is something that is needed to stabilise frustratingly bearish investment sentiment of late.”
[See more: Why have Macao’s gaming stocks fallen?]
Kim also noted that the purchase amount was not small in that it is “equivalent to 6.5 days’ worth of Sands China trading value.”
This purchase comes shortly after LVS’s majority shareholder, Miriam Adelson, announced last week her intention to sell off 10 percent or US$2 billion of her stake in the company, as part of her plan to gain ownership of the NBA team Dallas Mavericks.
Following Adelson’s announcement, Las Vegas Sands stated that it would acquire $US250 million of the shares that Adelson was intending to sell.
—With reporting by Kenny Fong
