GGRAsia – LVS confirms talks for poss US$6bln disposal Vegas venues

LVS confirms talks for poss US$6bln disposal Vegas venues

Oct 27, 2020 Newsdesk Latest News, Macau, Singapore, Top of the deck, World

United States-based casino operator Las Vegas Sands Corp (LVS) has confirmed it is in early discussions about a possible US$6-billion sale of its venues in Las Vegas, Nevada, reports Bloomberg, citing as its source a company representative. The outlet said the gaming firm was working with “an advisor” on the matter.

A Las Vegas Sands spokesman told GGRAsia that the firm had nothing to add to what had been reported.

Las Vegas Sands is parent of Macau casino operator Sands China Ltd. The latter – along with the other five licensees in that market – sees its current Macau rights expire in June 2022. A public retender process is expected in Macau in connection with that expiry. Las Vegas Sands also runs the Marina Bay Sands casino complex in Singapore.

Bloomberg cited the parent’s representative as saying nothing had been finalised regarding disposal of its Las Vegas venues.

In the Nevada gambling hub, the group runs the Venetian Las Vegas and the Palazzo casino resorts (pictured), and the Sands Expo Convention Center. All the venues are next to the Las Vegas Strip.

According to Bloomberg – citing people said to have knowledge of the matter, but who did not wish to be identified because the talks were private – the sale of the Las Vegas assets could fetch US$6 billion or more.

In the third quarter this year, the group’s Las Vegas gaming operations generated US$59 million in casino revenue, a 42.7 percent decline on the US$103 million in the prior-year quarter, amid the ongoing business disruption of the Covid-19 pandemic.

In Macau, the group’s quarterly casino revenue was US$84 million, down 95.0 percent on the nearly US$1.67 billion achieved in the same quarter a year earlier.

At Marina Bay Sands in Singapore, third-quarter casino revenue was US$197 million, down 64.4 percent year-on-year from the US$553 million on a year earlier.

As of September 30, Las Vegas Sands’ total debt outstanding, excluding finance leases, was US$13.89 billion.

The firm has suspended its dividend policy amid the global health crisis.

Las Vegas Sands’ share price spiked by about 12 percent shortly after news was published regarding a potential sale of U.S. assets, but the stock closed at a level down 3.1 percent on Tuesday.