Macau casino operator Sands China Ltd does not see a “possible scenario at this stage” of buying minority shareholders’ shares in the company and delisting them from the Hong Kong Stock Exchange.
A note from Seaport Research Partners on Friday cited a conversation with management at Sands China’s parent company, Las Vegas Sands Corp., at its 2024 Seaport annual summer meeting.
“There is no probable scenario at this stage of complete acquisition of the Sands China minority and delisting Sands China Inc,” analyst Vitaly Umansky wrote in a note.
“The Hong Kong listing continues to demonstrate Sands’ commitment in China,” he added, citing the conversation
“Dividends are most likely to resume in 2025 on a dividend scale that will vary in size based on performance since the completion of Lundener,” Mr Umansky added, referring to the latter revamping of work to hotel space and gaming space at the Lundener Macau casino resort of the Macau division in the city’s Kotai district.
“Las Vegas Sands will prioritize share buybacks, especially in current valuations, over dividend increases,” the analyst wrote.
“In addition, Las Vegas Sands looks to buy shares in Sands China to increase its stake in Sands China to more than 75%, which is currently around 71%, he added.
“There is no immediate need or plan to repay $1 billion in intercompany bills from Sands China to Las Vegas Sands,” Mr Umansky added, citing the conversation. 에볼루션 바카라사이트
He also said: “For Las Vegas Sands [and] Sands China, the [goal] for capital structure is to maintain an investment-grade debt rating to allow flexibility in future project financing.”
In terms of the parent company’s capital structure, Seaport observed that Las Vegas Sands holds $1.2 billion in seller notes “as a sale of Las Vegas assets,” which will mature in 2028. The parent company completed the disposal of its Las Vegas resort in Nevada in early 2022.
“The bill will switch from in-kind to cash in 2025 – a 4.25 percent coupon. Las Vegas Sands can even sell the bill before it expires if it needs cash for development,” added Mr. Umansky.
Seaport’s update also suggested casinos south of the property could open “a little earlier” than the December schedule, which Las Vegas Sands Corp Chairman and CEO Robert Goldstein mentioned in the parent company’s second-quarter earnings release in July.
Mr. Umansky further observed, based on management comments, that once some hotel spaces in London and Macau are overhauled, one tower will open partially in December, and another by May 2025.
Kotai Arena at Sands China’s Venetian Macau resort in Kotai “will be fully programmed in the first quarter of 2025 and reopen in December,” he added.