Las Vegas Sands plans to increase stake in Sands China

The Macau subsidiary of Las Vegas Sands Corp., Sands China Ltd., is set to see a stake increase.

According to a filing with the Hong Kong Stock Exchange, LVS, the controlling shareholder, will acquire up to HK$1.95 billion (US$250 million) in Sands China shares via a share purchase transaction with an unknown financial institution.

This is equivalent to 96,600,247 shares, or 1.19% of total shares issued. Currently, 70% of Sands China is owned by LVS.

The transaction will be carried out by Venetian Venture Development Intermediate II, an indirect wholly-owned subsidiary of LVS and the immediate controlling shareholder of Sands China.

According to JP Morgan, this move is “significantly positive” for Sands China since it demonstrates management’s strong commitment and confidence, both of which are seen to be essential to calming the recent adverse market sentiment. In terms of magnitude, the investment is especially noteworthy since it equals 6.5 days’ worth of Sands China market value.

Following the sale of its casinos in Las Vegas for US$6.25 billion in early 2022, Las Vegas Sands had announced its intention to increase its stake in Sands China. The company has always used its resources sparingly, but the present state of the market—lower trading Macau gaming stocks—may have spurred this move.

In addition, Las Vegas Sands said last week that it had agreed to buy $250 million worth of shares from Dr. Miriam Adelson, the company’s controlling shareholder.

Original story by: IAG