Sands China Ltd has inked an agreement with parent company Las Vegas Sands Corp that will see the Macau-based subsidiary acquire COVID-19 protective equipment and supplies from local suppliers on behalf of LVS.
The agreement, to run for the next two years, will see Sands China procure equipment and supplies upon request from the LVS Group, which will then be sold to LVS on a cost basis, including employment-related expenses and statutory costs for hours worked by the relevant employees. Spending will be capped at US$15.5 million in 2020, US$12.6 million in 2021 and US$8.3 million in 2022.
According to a Sands China filing, equipment to be sourced will comprise infrared temperature monitor systems, disposable face masks and other personal protective equipment.
“Our Group is experienced in procuring and acquiring Equipment and Supplies from suppliers in the Asia Pacific region and has existing supply relationships and agreements in place,” Sands China explained in relation to the deal.
“The Company understands that the Equipment and Supplies provided to the LVS Group will be deployed for the benefit of the LVS Group’s team members and guests … as well as forming part of the LVS Group’s corporate social responsibility initiatives, which the Company supports.
“The Company is firm in its commitment to aid and support the fight against the COVID-19 coronavirus pandemic. To date, the Company has contributed approximately US$2.5 million to mainland China and US$600,000 to the local Macau community as part of the Company’s COVID-19 coronavirus relief efforts.
“In Macau these efforts included the distribution of approximately 600,000 relief items to local community organizations.”