Las Vegas Sands mulling Vegas casinos sale to fund Asia expansion

Gaming group Las Vegas Sands is preparing a possible US$6 billion (MOP47.8 billion) sale of its Las Vegas properties, Venetian Resort Las Vegas, the Palazzo and the Sands Expo Convention Center, in order to shift its focus to Asia, Bloomberg reported.

According to the report, a representative for Las Vegas Sands confirmed to Bloomberg that it was in very early discussions about a sale and that nothing has been finalized.

The sale was said to be able to fund the group’s plans to expand in Macau and Singapore, with US$6.3 billion of existing liquidity able to sustain idle operations for 17 months.

The reduced significance of the Las Vegas market for the group was also indicated as one of the reasons for the possible sale for its Vegas strip properties.

Las Vegas Sands Corp. reported an 82 per cent quarter-to-quarter drop in net revenue to some US$586 million, with some US$610 million in operating losses.

Its local gaming concessionaire, Sands China has reported some US$562 million in net losses for the third quarter of this year, the most recent Las Vegas Sands financial report indicates, with total net revenues generated by the concessionaire decreased by 92.1 per cent year-on-year to US$167 million.

The group currently has an on-going US$2.2 billion capital investment in the Sands Cotai revamp into Londoner Macao and Four Seasons, with The Grand Suites at Four Seasons already completed and opened, while The Londoner, is expected to complete interior works by December.

Sands China CEO, Sheldon Adelson, expressed in the last financial report conference call that the group is committed to to “invest billions of digital investment dollars” and extend its contributions to Macau’s diversification and evolution, due to optimism over the city’s recovery outlook.