(Reuters) - Las Vegas Sands Corp , founded by late casino mogul Sheldon Adelson, will sell its Vegas properties for $6.25 billion, exiting the U.S. gambling hot spot after three decades to focus on Asia, home to the worlds largest gambling hub, Macau.<\/p>\n
FILE PHOTO: The logo of Las Vegas Sands Corp is pictured at the Japan IR EXPO in Yokohama, Japan January 29, 2020. REUTERS\/Kim Kyung-Hoon<\/p>\n
The sale comes nearly two months after the death of Adelson - widely credited with helping transform the Chinese territory of Macau from a den of hard core gambling parlors into a center of luxury resorts and convention centers with revenue that now dwarfs Las Vegas.<\/p>\n
Las Vegas Sands said the deal underscores its strategy of reinvesting in its Asian operations, with a focus on Macau and Singapore. Macau and Singapore accounted for 48% and 35% of the companys total revenue in 2020, respectively, according to Refinitiv Eikon data.<\/p>\n
The deal further strengthens the companys balance sheet to fund future growth in other domestic and global markets, Jefferies analysts said, viewing the sale as a net positive.<\/p>\n
The properties being sold by the casino operator include the Venetian Resort Las Vegas and the Sands Expo and Convention Center. A possible sale of the properties was widely reported late last year.<\/p>\n
The gambling industry, which thrives on air travel and large groups of people in close proximity, has been one of the hardest hit by the COVID-19 pandemic.<\/p>\n
For 2020, Las Vegas Sands reported a loss of $1.69 billion, the biggest in its history, as travel restrictions and lockdowns brought the gambling industry to a virtual stand-still. The companys cash and short-term investments halved to $2.12 billion at the end of 2020 from 2019.<\/p>\n
(Graphic: COVID-19 pandemic hits casino operators in 2020: )<\/p>\n
However, widespread vaccinations are expected to aid in the travel recovery. Last month, rival MGM Resorts signaled a pickup in demand later this year as vaccines become more widely available.<\/p>\n
Apollo Global Management Incs affiliate-managed funds will buy the operating company of the Venetian for $2.25 billion and VICI Properties will buy the land and real estate assets of the Venetian for $4 billion.<\/p>\n
Apollos Alex van Hoek said the investment underscores our conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and across the world.<\/p>\n
Shares of Las Vegas Sands were up 1.2% at $65.74 in morning trading. The S&P 500 casinos and gaming index has gained 15.2% this year, compared to a 3% rise in the S&P 500.<\/p>\n
Reporting by Sanjana Shivdas and Noor Zainab Hussain in Bengaluru; Additional reporting by Manojna Maddipatla. Writing by Sweta Singh; Editing by Maju Samuel, Bernard Orr<\/p>\n
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Las Vegas Sands shuts door on U.S. gambling hub with $6.25 billion asset sale - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" (Reuters) - Las Vegas Sands Corp , founded by late casino mogul Sheldon Adelson, will sell its Vegas properties for $6.25 billion, exiting the U.S. gambling hot spot after three decades to focus on Asia, home to the worlds largest gambling hub, Macau Continue reading