{"id":171490,"date":"2021-04-22T08:02:47","date_gmt":"2021-04-22T15:02:47","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=171490"},"modified":"2021-04-22T10:36:02","modified_gmt":"2021-04-22T17:36:02","slug":"sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/","title":{"rendered":"Las Vegas Sands Mulls Boosting Sands China Investment with Venetian Sale Cash"},"content":{"rendered":"

Las Vegas Sands (NYSE:LVS) is considering using some of the proceeds from the sale of its Strip assets to increase its stake in Sands China, its Macau unit.<\/p>\n

\"Sands
The Venetian Macau pictured above. Las Vegas Sands could increase its ownership in Sands China. (Image: South China Morning Post<\/em>)<\/figcaption><\/figure>\n

Executives from the largest US gaming operator by market capitalization commented on the matter during the company first-quarter earnings conference call. Sands reported total property earnings before interest, taxes, depreciation and amortization (EBITDA) in Macau of $100 million, with $144 million in Singapore. Analysts expected $106 million and $146 million, respectively.<\/p>\n

Last month, the Las Vegas-based company said it’s selling Venetian Resort and Sands Expo and Convention Center on the Strip to Apollo Global Management and VICI Properties for $6.25 billion, stoking speculation as to what the operator will do<\/a> with the influx of cash. It appears boosting its holdings in Sands China is on the table.<\/p>\n

“So it’s definitely something that we think about and consider over time. I think where we are now \u2013 we don’t have the proceeds yet. We’re looking at all the options, and we’re going to consider everything,\u201d said CFO Patrick Dumont on the earnings call.<\/p>\n

LVS owns 69.94 percent of the Macau business and could raise that percentage to 75 percent.<\/strong><\/p>\n

The Hong Kong Stock, Sands China’s listing venue, requires member firms to freely float 25 percent of their shares, but Dumont notes there are exceptions to that policy.<\/p>\n

‘Staying Patient’ on Sands China Stake<\/h2>\n

The LVS CFO said the company is considering multiple options for how to deploy the capital from the sale of the Las Vegas assets.<\/p>\n

\u201cThere is a lot of opportunity in front of the company. We\u2019re staying patient, we\u2019re looking at it all, and we\u2019re going to look at it through different lenses,\u201d he said on the call. \u201cIt\u2019s not something I\u2019m going to say we\u2019ll do now. But it is something we will consider as we look across how to deploy capital.\u201d<\/p>\n

\n

Pragmatism aside, it’s widely expected that LVS will deploy some of that capital in Asia and likely spread it across its Macau and Singapore operations<\/a>. Prior to the sale of the Strip holdings, Macau and Singapore were long the primary drivers of the operator’s EBITDA and revenue, indicating it’s likely Sands will invest some of that $6.25 billion in those markets.<\/p>\n<\/div>\n

A portion of those proceeds could also be used to fund expansion in New York City or Texas — the latter of which LVS is already spending in<\/a> to drum up support for an integrated resort project.<\/p>\n

Analyst Talk<\/h2>\n

Investing more in Sands China is a long-term move. But analysts are focusing on near-term signs of recovery in Macau. As a result, they’re coming away somewhat tepid on LVS shares.<\/p>\n

\u201cKey barriers and visibility around visa issuance\/testing remain unchanged. LVS noted improvements in March\/April, but indicated the recovery is likely more gradual and that investors may be disappointed waiting for a specific inflection point,\u201d said Bank of America analyst Shaun Kelley in a note to clients today.<\/p>\n

He rates LVS stock \u201cneutral.\u201d Stifel’s Steven Wieczynski is bullish on the shares over longer holding periods, but acknowledges some investors won’t be pleased with the pace of Sands’ rebound.<\/strong><\/p>\n

\u201cOur frustration level continues to be high, given LVS\u2019 massive underperformance versus our coverage universe and the broader equity markets as well,\u201d he said. \u201cWe aren\u2019t throwing in the towel and at this point are actually more positive about the setup in the shares moving forward than we probably have been over the last six months.\u201d<\/span><\/p>\n

Wieczynski rates LVS a \u201cbuy\u201d with a $77 price target.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Las Vegas Sands (NYSE:LVS) is considering using some of the proceeds from the sale of its Strip assets to increase its stake in Sands China, its Macau unit. Executives from the largest US gaming operator by market capitalization commented on the matter during the company first-quarter earnings conference call. Sands reported total property earnings before […]<\/p>\n","protected":false},"author":46,"featured_media":171492,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\nSands Could Use Venetian Sale Cash to Buy More of Sands China<\/title>\n<meta name=\"description\" content=\"Las Vegas Sands could deploy some of the cash from its Venetian to increase its holdings in Sands China.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sands Could Use Venetian Sale Cash to Buy More of Sands China\" \/>\n<meta property=\"og:description\" content=\"Las Vegas Sands could deploy some of the cash from its Venetian to increase its holdings in Sands China.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-22T15:02:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-22T17:36:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/LVS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1098\" \/>\n\t<meta property=\"og:image:height\" content=\"732\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/\",\"url\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/\",\"name\":\"Sands Could Use Venetian Sale Cash to Buy More of Sands China\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/LVS.jpg\",\"datePublished\":\"2021-04-22T15:02:47+00:00\",\"dateModified\":\"2021-04-22T17:36:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Las Vegas Sands could deploy some of the cash from its Venetian to increase its holdings in Sands China.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/sands-could-use-venetian-sale-cash-to-buy-more-of-sands-china\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/LVS.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/LVS.jpg\",\"width\":1098,\"height\":732,\"caption\":\"The Venetian Macau. 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