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NEW YORK (REUTERS) – Las Vegas Sands, founded by the late casino mogul Sheldon Adelson, will sell its Las Vegas properties for $ 6.25 billion (S $ 8.33 billion), emerging from the US gambling hot spot. After three decades to focus on Asia, home to Singapore. and the largest gaming center in the world, Macau.
Las Vegas Sands is also shortening its name to Sands as a result of leaving Las Vegas, CNN reported. In a press release, Adelson’s company said the change is “bittersweet” and will help it focus on faster-growing markets such as Asia.
The sale comes nearly two months after the death of Adelson, widely recognized for having helped transform China’s Macau territory from a haunt of gambling halls into a hub of luxury resorts and convention centers with now-dwarfing revenues. to Las Vegas.
Las Vegas Sands said the deal underscores its strategy of reinvesting in its Asian operations, with a focus on Macau and Singapore, where it owns the Marina Bay Sands casino resort. Macau and Singapore accounted for 48 percent and 35 percent of the company’s total revenue in 2020, respectively, according to data from Refinitiv Eikon.
“The deal further strengthens the company’s balance sheet to fund future growth in other national and global markets,” said Jefferies analysts, who see the sale as a positive net result.
Properties sold by the casino operator include the Venetian Resort Las Vegas and the Sands Expo and Convention Center. A possible sale of the properties was widely reported late last year.
The gaming industry, which thrives on air travel and large groups of people in close proximity, has been one of the hardest hit by the Covid-19 pandemic.
For 2020, Las Vegas Sands reported a loss of $ 1.69 billion, the largest in its history, as travel restrictions and lockdowns brought the gaming industry to virtual stagnation. The company’s cash and short-term investments were cut in half to $ 2.12 billion in late 2020 from 2019.
However, widespread vaccinations are expected to aid in travel recovery. Last month, rival MGM Resorts signaled a spike in demand later this year as vaccines became more available.
Affiliate managed funds of Apollo Global Management Inc will buy the Venetian operating company for $ 2.25 billion and VICI Properties will buy the Venetian land and real estate assets for $ 4 billion.
Apollo’s Alex van Hoek said the investment “underscores our belief in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and around the world.”
Las Vegas Sands shares rose 1.2 percent to $ 65.74 in morning trading. The S&P 500 Casino and Gaming Index has gained 15.2 percent this year, compared with a 3 percent increase on the S&P 500.
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