Las Vegas Sands (LVS) announced on Wednesday that it has agreed to sell its Las Vegas property for approximately $ 6.25 billion, as it establishes its focus on its operations in Asia. LVS share has risen.
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Apollo Global Management (APO) will obtain Real estate and operations in Las Vegas, 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 sales financing in the form of a term credit and security agreement. Meanwhile, VICI Properties will acquire subsidiaries that own the real estate and fixed assets of The Venetian for approximately $ 4 billion in cash.
Prior to his death on Jan. 11, Las Vegas Sands founder and CEO Sheldon Adelson discussed the sale of the Las Vegas property. The closures imposed by the government, which have reduced Las Vegas casinos with fewer travel and hotel occupancy, may have accelerated plans.
“Asia remains the backbone of this company, and our developments in Macao and Singapore are at the center of our attention,” Robert Goldstein, chairman and CEO, said in a news release.
COO Patrick Dumont added: “Our long-term strategy to reinvest in our Asian industries and return capital to our shareholders will be enhanced by this transaction.”
Despite the name, most of the Las Vegas Sands revenue comes from Macau for several years.
Goldstein, chief executive, said there were still “potential development opportunities within the country.” Las Vegas Sands has lobbied in New York and Texas to allow casinos in their states. The company is also looking at expanding online gambling, COO Dumont added.
LVS Stock
Shares rose 2.3% to 66.45 on the stock market today. LVS shares erupted from a flat base on February 22 with a buyout of 60.98, according to the MarketSmith chart analysis. Shares are extended beyond the 5% buy range.
Las Vegas Sands’ relative strength line has been trending upward lately. As Covid-19 infections decrease and more people get vaccinated, there is hope that casinos can fully reopen.
Among other casino and gambling supplies, MGM Resorts (MGM) climbed 1.8%, Caesars Entertainment (CZR) increased by 2.4%, Bally’s (BALY) decreased 0.4%. DraftKings (DKNG) reversed from a record high and decreased by 2.1%. Penn National Gaming (PENN) decreased by 3.2%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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