Las Vegas Sands sells Pennsylvania casino - $1.3 billion price tag
For Las Vegas Sands, the world’s largest casino operator, last week saw a long awaited win-win resolution: it managed to divest itself of an asset that didn’t fit with its current business model, and it netted a cool $1.3 billion in the process.
Las Vegas Sands share price rose last week on the back of the sale
SOURCE: Yahoo Finance
The company sold its Bethlehem, Pennsylvania-based casino to Wind Creek Hospitality, an affiliate of the Poarch Band of Creek Indians, according to a statement released last Thursday. The casino in question was a top performer – Pennsylvania’s second-highest grossing casino, according to Bloomberg Intelligence. But it didn’t make sense with Sands’ current strategy, which is seeing it expand into large, international meeting and convention destinations.
Sands has invested heavily in Macau – the only part of China where gambling is legal – and is touted as an early mover in the emerging Japanese gaming scene. While it maintains its domestic showing in Las Vegas, it was becoming less and less clear how Sands Bethlehem formed a part of this outward looking strategy.
The company was in the process of selling the location to MGM last year, when a change in regulations that would allow online gambling to expand in the area impeded the deal. MGM, seeing that the casino would be facing new types of competition, decided to back out.
Las Vegas Sands’ boss Sheldon Adelson made the following statement, praising the property he had just sold: “Sands Bethlehem has become one of the leading regional entertainment and gaming destinations in the United States and we are extremely proud of the positive contributions the property has made for Bethlehem… and eastern Pennsylvania.”
The company did not explain how they’d use the profits from the sale, but said it would “enhance liquidity as Sands pursues new development opportunities and returns capital to shareholders.”
Dominion holds Las Vegas Sands in its Global Trends Luxury Fund.
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