Adelson’s Las Vegas Sands Exploring $6 Billion Sale of Vegas Casinos

(Bloomberg) - Sheldon Adelsons Las Vegas Sands Corp. is investigating the sales of its Las Vegas casinos, according to experts. This would mark the mogul's exit from the US gambling industry for now.
Sands, the world's largest casino company, is working with a consultant to generate interest in the Venetian Resort Las Vegas, the Palazzo, and the Sands Expo Convention Center, which could collectively raise $ 6 billion or more, people said who asked not to be identified because the conversations are private. The accommodations are all connected along the city's famous strip.
A Las Vegas Sands representative confirmed that this was very early discussion of a sale and that nothing had been completed.
A sale would focus Sands' casino portfolio entirely in Macau and Singapore, two major casino markets for Adelson, who is one of the richest people in the world with an estimated net worth of $ 29.7 billion. The US was already a small and shrinking part of its business, accounting for less than 15% of sales last year.
The money could allow the company to fund other development opportunities. Sands was eliminated from the competition to build a casino in Japan earlier this year because executives were deemed unfavorable. Adelson, 87, has expressed an interest in building in New York City, an opportunity that may arise next year.
The stock rose as much as 12% on Monday after trading closed after Bloomberg reported the deal on the news. The stock closed 3.1% at $ 49.13.
Makes sense
Given the global pandemic that is creating uncertainty in Las Vegas' convention business and an implicit price for the property at 12x earnings before interest, taxes, depreciation and amortization, a deal could make sense, wrote Ben Chaiken, an analyst at Credit Suisse. in one study, note late Monday. He added the caveat that it is not clear who would buy the casinos.
Adelson is the chairman, chief executive officer and majority shareholder of Las Vegas Sands, with a market value of $ 37.5 billion.
Macau's casinos, the world's largest gaming market, generated 63% of the company's $ 13.7 billion revenue last year before the pandemic broke out. Covid-19 has devastated the casino industry, as has other businesses where people gather in large numbers, such as cinemas, concerts, and restaurants. Singapore came in second at 22%.
Sands is expanding in both regions. In Macau alone, spending of $ 2.2 billion is planned.
(Updates sources of income in paragraph ninth)
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