Macau-based Galaxy Entertainment Group has announced it is to purchase 5.3 million primary shares of Wynn Resorts at a price of $175 a share, resulting in $927,500,000 of gross proceeds to Wynn Resorts.
The purchase will give the Macau-based group around 5% stake in Wynn, and is seen by financial pundits as what could be the first step towards a full take-over bid.
At the same time, it has been announced that Steve Wynn has sold all his remaining stock in Wynn Resorts for a total of US$1.4bn to two institutional investors. Wynn stood down as CEO of the company last month amid allegations of sexual misconduct.
Galaxy Entertainment Group Vice Chairman Francis Lui said, “This is a unique opportunity to acquire an investment in a globally recognised entertainment corporation with exceptionally high-quality assets and a significant development pipeline.”
Wynn Resorts new CEO Matt Maddox added, “It is an honour to have such a distinguished company as Galaxy Entertainment as a shareholder which shares many of the same core operating philosophies and values.”
This week’s announcement follows the settlement two weeks ago of long-standing litigation between Wynn Resorts and Universal Entertainment Corporation. The resolution of that litigation, combined with the new agreement with Galaxy Entertainment Group and the liquidation of Steve Wynn’s shares in the company positions Wynn Resorts for even greater stability, strategic focus and future growth.
Galaxy Entertainment Group is one of the world’s leading resorts, hospitality and gaming companies. It primarily develops and operates a large portfolio of integrated resort, retail, dining, hotel and gaming facilities in Macau. The Group is listed on the Hong Kong Stock Exchange and is a constituent stock of the Hang Seng Index. GEG is one of the three original concessionaires in Macau with a successful track record of delivering innovative, spectacular and award-winning properties, products and services, underpinned by a “World Class, Asian Heart” service philosophy, that has enabled it to consistently outperform and lead the market in Macau.
GEG operates three flagship destinations in Macau: on Cotai, Galaxy Macau™, one of the world’s largest integrated destination resorts, and the adjoining Broadway Macau™, a unique landmark entertainment and food street destination; and on the Peninsula, StarWorld Macau, an award winning premium property.
The Group has the largest undeveloped landbank of any concessionaire in Macau. When the Next Chapter of its Cotai development is completed, GEG’s resorts footprint on Cotai will double to more than 2 million square meters, making the resorts, entertainment and MICE precinct one of the largest and most diverse integrated destinations in the world. GEG is also planning to develop a world class leisure and recreation destination resort on a 2.7 square kilometre land parcel on Hengqin adjacent to Macau. This resort will complement GEG’s offerings in Macau, and at the same time differentiate it from its peers while supporting Macau in its vision of becoming a World Centre of Tourism and Leisure.
In July 2015, GEG made a strategic investment in Europe, in the Société des Bains de Mer (“Monte-Carlo SBM”), a world-renowned owner and operator of iconic luxury hotels and resorts in the Principality of Monaco.
(Source: PR Newswire)