Miriam Adelson sells $2 billion Sands stake, company buys back $250 million
PhD. Miriam Adelson and Miriam Adelson Trust to sell $2 billion Las Vegas Sands (NYSE (LVS) shares, and the transaction will not result in any proceeds for the gaming company founded by her late husband, Sheldon Adelson.
BofA Securities and Goldman Sachs are joint bookrunners on the stock sale.
In connection with this offering, the selling stockholders and certain affiliated trusts are expected to enter into a lock-up agreement for a period of 365 days from the date of pricing of this offering. During this period, they are prohibited from engaging in certain transactions related to the Company’s common stock,” according to a statement from the Las Vegas casino operator.
While Sands will not receive any cash from Adelson's stock sale, the gaming company said it will buy back up to $250 million in sold shares to potentially cushion the impact of the $2 billion sale. partial loss. Interestingly, the operator recently announced a $2 billion stock buyback program. The gaming stock fell 4.60% in after-hours trading on news of Adelson's sale.
Miriam Adelson remains Sands’ largest investor
In mid-2019, while battling non-Hodgkin's lymphoma, Sheldon Adelson transferred millions of Sands stock to his wife. This made her the richest person in Israel—she holds dual citizenship in the United States and Israel—a status she still holds today.
Sheldon Adelson and a handful of other gaming scions are widely considered among the architects of the integrated resort structure that helped transform the casino industry from a reliance on gaming revenue to billions of dollars in annual convention revenue. Food, Drink and Entertainment. He was also the first U.S. gaming executive to recognize the potential of Macau, where Sands China is now the largest operator.
Sheldon Adelson passed away in January 2021, and Rob Goldstein took over the helm of LVS. Conventional wisdom at the time was that Miriam Adelson and her family would not "reduce their stake in the company." Prior to Tuesday's announcement, Miriam Adelson and her namesake trust controlled 57% of outstanding shares.
That number stood at 435.62 million shares, according to Finviz. Based on Tuesday's closing price of $47.66, that would equate to a sale of 41.96 million shares for $2 billion, meaning Adelson's stake in Sands would be reduced to 393.66 million shares.
Possible uses of cash
Although Miriam Adelson is Sands' largest shareholder, she is not involved in the gaming company's day-to-day operations. She doesn't even have a seat on the board, but her son-in-law, Patrick Dumont, does. He is also chief operating officer and president of Macau Paris operator.
Neither Miriam Adelson nor the company has commented on how the new funds will be deployed, nor are they required by law to do so.
It's possible Adelson used some of those funds for pro-Israel causes and charities, and given her track record, it wouldn't be enough if Republican candidates and the Republican National Committee (RNC) approached her for donations. No wonder. party.
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Source: www.casino.org
