Las Vegas Sands Corp. (LVS) today (Wednesday) announced that it has entered into definitive agreements to sell its Las Vegas real property and operations, including The Venetian Resort Las Vegas and the Sands Expo and Convention Center for an aggregate purchase price of approximately $6.25 billion.
Market shares of LVS rallied 3% in its premarket trading after the announcement that it has agreed to sell its property and operations to Apollo Global Management and VICI Properties Inc.
Under the terms of the deal, Apollo will acquire the operating company of The Venetian, which includes the Venetian Resort and the Sands Expo and Convention Center, for $2.25 billion, while VICI will buy the land and real estate assets of The Venetian for $4.0 billion.
The closing of the transactions is subject to customary closing conditions, including regulatory approvals.
Sands executives said that while selling The Venetian, the property that helped to establish Sheldon Adelson and his company at the top of the gaming industry, would be bittersweet, the opportunities for the company to pursue new growth prospects are robust.
“The Venetian changed the face of future casino development and cemented Sheldon Adelson’s legacy as one of the most influential people in the history of the gaming and hospitality industry. As we announce the sale of The Venetian Resort, we pay tribute to Mr Adelson’s legacy while starting a new chapter in this company’s history,” said LVS chairman and CEO Robert Goldstein, as cited in a statement issued last night.
Goldstein succeeded company founder Sheldon Adelson, who died on January 11 from complications related to treatment for non-Hodgkin’s lymphoma.
Goldstein noted that Asia remains the “backbone” of the company and that its developments in Macau and Singapore remain “center of [their] attention.”
“This company is focused on growth, and we see meaningful opportunities on a variety of fronts. […] We will always look for ways to reinvest in our properties and those communities,” he said, adding that there are also potential development opportunities domestically, to which the company believes to be of significant capital investment.
Meanwhile, Patrick Dumont, the company’s president and chief operating officer, echoed the same sentiment noting that its long-held strategy of reinvesting in its Asian operations and returning capital to the company’s shareholders will be enhanced through this transaction
“Our company’s history will always be traced to the opening of The Venetian in Las Vegas. Today, Sands is the most valuable gaming company in the world with an established track record of success in developing and operating large-scale integrated resorts in Asia and the United States,” Dumont added.
Goldstein, who once served as the president and chief operating officer of The Venetian and the connected Palazzo Resort, said that it would be difficult saying goodbye to many long-time colleagues, but that he was confident the property will continue in its great success. He also said that Apollo and VICI were the right companies to lead the property into the future and that additions such as the MSG Sphere, a live performance venue being developed by Madison Square Garden, will create new growth opportunities for the property.
“The property is a best-in-class asset with a talented team of people operating it. I am confident Las Vegas will soon return to a more normal operating environment and The Venetian’s hard-working and dedicated team members will continue delivering a world-class experience to guests eager to enjoy it. I know I will be rooting for them,” he said.