US casino giant Las Vegas Sands Corp is in early discussions about a potential sale of its Las Vegas casinos as part of a potential $ 6 billion deal that would center its entire remaining gaming portfolio in Asia.
According to a report by Bloomberg Published Tuesday morning (Asian time), an LVS representative confirmed that initial talks have taken place on a sale that could see the company unload the Venetian Las Vegas, the Palazzo and the Sands Expo Convention Center.
News of a potential sale comes less than a week after LVS reported a group-wide operating loss of US $ 610 million for the three months to September 30, 2020 on an 82.0% decline in net revenue to US $ 586 million due to COVID-19. The company previously reported a loss of US $ 985 million in the second quarter.
LVS is also in the midst of major capex jobs in both Macau and Singapore, including the $ 3.3 billion expansion of Marina Bay Sands and the $ 2.2 billion transformation of Sands Cotai Central into The Londoner Macau. .
He had been seen as a major contender for developing an integrated resort in Japan before president and chief executive Sheldon Adelson announced in May that the company would be pulling out due to concerns over the regulatory environment. It has been suggested that LVS will likely revisit its interest in Japan if conditions improve or Tokyo emerges as a candidate city to develop an integrated resort.
Adelson, 87, is credited with reviving Las Vegas fortunes after buying the old Sands hotel for $ 128 million in 1998, tearing it down and building the Venetian and its adjacent Sands Expo and Convention Center, eventually creating the model of convention that has propelled the city forward.
However, it is Macau and Singapore that helped Adelson reach number 19 on the chart Forbes rich list with an estimated fortune of over $ 30 billion. Macau generated 63% of LVS’s revenue in 2019, with Singapore recording another 22% before COVID-19 paralyzed the industry.
Bloomberg he said LVS was currently working with a consultant to solicit interest in its Las Vegas properties.