Las Vegas Sands to boost Macau stake

Las Vegas Sands Corp (LVS) is set to further increase its controlling interest in Macau-based subsidiary Sands China Ltd., investing up to HKD800 million to boost its stake to nearly 72%.

In a filing to the Hong Kong Stock Exchange yesterday [Macau time], Sands China announced its U.S.-based parent company, LVS, plans to acquire additional shares in the Macau casino operator.

The transaction will be carried out through Venetian Venture Development Intermediate II, an indirect wholly owned subsidiary of LVS.

According to the filing, Venetian Venture will pay up to HKD800 million to purchase approximately 59.6 million Sands China shares, representing 0.74% of the company’s total outstanding shares.

This will increase LVS’s stake in Sands China from the current 71.02% to nearly 72%.

The latest announcement comes after LVS invested HKD1.95 billion (USD250 million) in December 2023 to lift its stake in Sands China to around 71%.

The casino giant first hinted at increasing its Macau presence in 2021, following the sale of its Las Vegas gaming assets for USD6.25 billion.

Sands China, which operates multiple integrated resorts in Macau, including Sands Macao, The Venetian Macao, and The Parisian Macao, said it “will continue to maintain sufficient public float of the shares” following the share purchase transaction.

The move comes as Moody’s Investors Service Inc. noted that “share repurchases and the payment of dividends” remain a credit constraint for the LVS group. VC