US casino giant Las Vegas Sands Corp is in early discussions over a potential sale of its Las Vegas casinos as part of a potential US$6 billion deal that would center its entire remaining gaming portfolio in Asia.
According to a report by Bloomberg published Tuesday morning (Asia time), an LVS representative has confirmed that initial talks over a sale have taken place which could see the company offload The Venetian Las Vegas, the Palazzo and 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 30 September 2020 on an 82.0% decline in net revenue to US$586 million due to COVID-19. The company had previously reported a loss of US$985 million in the second quarter.
LVS is also in the midst of major capex works in both Macau and Singapore, including the US$3.3 billion expansion of Marina Bay Sands and US$2.2 billion transformation of Sands Cotai Central into The Londoner Macao.
It had been considered a leading contender to develop an integrated resort in Japan before Chairman and CEO Sheldon Adelson announced in May that the company was withdrawing due to concerns over the regulatory environment. It has been suggested that LVS would likely revisit its Japan interest should conditions improve or Tokyo emerge as a candidate city to develop an integrated resort.
Adelson, 87, is credited with reviving the flagging fortunes of Las Vegas after buying the old Sands hotel for US$128 million in 1998, knocking it down and building the Venetian and its adjoining Sands Expo and Convention Center – ultimately creating the convention model that has driven the city forward.
However, it is Macau and Singapore that have helped Adelson reach No.19 on the Forbes rich list with an estimated fortune of over US$30 billion. Macau generated 63% of LVS revenue in 2019, with Singapore kicking in another 22% before COVID-19 crippled the industry.
Bloomberg said LVS was currently working with an advisor to solicit interest for its Las Vegas properties.