Casinos look to Macau to 'save' Las Vegas | Yogonet International
Wynn Resorts and Las Vegas Sands to prepare an IPO plan for their Macau division

Casinos look to Macau to 'save' Las Vegas

United States
Reading time 54 seg

It looks as though Wynn Resorts might be getting ready to rid itself of the initial public offering plans the company had for Macau, which the report says can be a more than us$ 2 billion offering. Las Vegas Sands is also preparing an initial public offering of its Macau division, having hired Goldman Sachs to run the offer, the report added.

But there is speculation that MGM Mirage, which is under pressure from US gaming regulators and has a debt of about us$ 14 billion, may sell its stake in its Macau joint venture. Genting, a Malaysian gaming group, which has recently bought us$ 100 in MGM, looks to be a potential buyer.

According to Reuters, what's fuelling the activity is the US casino operators' aim to monetise Macau assets in order to support struggling operations in Las Vegas, bankers and analysts say.

After dropping 21 % in the first three months of the year, Hong Kong's benchmark Hang Seng Index has risen 62 % since its low in March, luring potential IPO candidates such as Sands and Wynn back to the market.

Meanwhile the report quoted analysts say that MGM would only benefit from pulling out of Macau. "MGM will relish the opportunity to get out of Macau," said Sanford Bernstein analyst Janet Brashear. "They need the cash and they haven't been able to succeed in the Macau market."

Leave your comment:
Subscribe to our newsletter
Enter your email to receive the latest news