In a time when the US economy is looking for local investment the Las Vegas Sands group is selling up two of its legendary Las Vegas properties in favour of further investment and expansion in China.
American casino and resort developer Las Vegas Sands (LVS) is following a common trend among globally minded corporations, looking to the Asian markets, in particular China, as their next big revenue generator.
While steeped in the history and drama of the development of Las Vegas, LVS is a company that serves not only the US gambling market but already holds a position in Singapore (the Marina Bay Sands), Macao (the Sands Macao, The Londoner Macao, The Venetian Macao, The Plaza Macao, and The Parisian Macao) and China with a majority stake in the Sands China.
Exiting US Holdings
In a surprise move to secure additional funding for its overseas expansion LVS is currently in the process of selling two legendary Las Vegas strip casinos to global investment firms.
The deal will see Apollo Global Management and VICI Properties take full ownership of both The Venetian Resort Las Vegas and Sands Expo and Convention Center for the princely sum of $6.25 billion.
Despite having a broad set of casino investments there is hope that under its new management these historic casinos will continue to operate as they had under the late Sheldon Adelson. VICI CEO Ed Pitoniak lauded Adelson’s vision and tenacity promising to “steward his legacy”.
Follow the Money
While LVS will continue their pro-casino campaign in Texas, in the hopes that the Lone Star State approves a series of destination casino resorts their primary focus remains further expansion and developments in Asia.
Patrick Dumont, president/COO, Las Vegas Sands, said previously:
“Our long-held strategy of reinvesting in our Asian operations and returning capital to our shareholders will be enhanced through this transaction. Additionally, as our industry continues to evolve, particularly as it relates to the digital marketplace, we are committed to exploring those possibilities.”
These plans for maximising their investments and growth potential will see them increase their stake in Sands China its current 69.94% to the maximum allowed for foreign investment by the Chinese government 75%.
While an additional 5.06% stake might not seem like much at face value it could mean as much as an additional $400 million per annum for LVS once China Sands returns to its pre-pandemic revenue figures which peaked at $8.8 billion.
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