written and last updated by
Sam Smith at
06 Dec 2023
Journalist, Editorial Department
American casino operator Las Vegas Sands has announced plans to increase its stake in its subsidiary Sands China Ltd. in Macau by approximately 1.19%. Currently, the parent company holds a 70% equity interest in Sands China, which is registered in Hong Kong.
According to documents released on Tuesday, the acquisition will cost Las Vegas Sands around HK$1.95 billion (approximately RUB 23.2 billion). At that time, the price per share was set at HK$20.20 (over RUB 240), indicating that the planned purchase involves more than 96.6 million shares. The transaction will be executed by Venetian Venture, the direct controlling shareholder of Sands China.
Following the announcement, brokerage firm JP Morgan Securities reported that Las Vegas Sands "plans to acquire shares of Sands [China] on the market." Analyst D. S. Kim noted, "We view this event as very positive for Sands China, as the news signals strong confidence and commitment from management. This is necessary to stabilize the bearish investment sentiment seen recently."
JP Morgan also pointed out that the scale of the investment is "insignificant" compared to the company's floating capital. "The planned amount of around US$250 million is equivalent to Sands China's trading value for 6.5 days," the brokerage firm stated.
In mid-October, during its third-quarter earnings report, Las Vegas Sands announced a US$2 billion (RUB 185.7 billion) share buyback program. Patrick Dumont, the company's president and chief operating officer, stated that the preferred method of returning value to shareholders would be through share buybacks rather than dividends.
Meanwhile, Station Casinos has officially opened the Durango resort-casino in Las Vegas.
