Las Vegas Sands increases its ownership in Sands China

Las Vegas Sands (NYSE: LVS) is looking to increase its ownership in its Sands China unit, which operates five integrated resorts in Macau. In a recent filing with the Hong Kong Stock Exchange, the gaming company revealed it is purchasing $24.31 million worth of Sands China equity through a holding company named Venetian Venture Development Intermediate II. This move will increase Sands’ ownership of the China unit to 71.19% from 70%.

Analysts believe that this increase in stake by Sands could be a smart move, as Macau concessionaire shares are currently trading at low valuations despite steady growth in the region’s gross gaming revenue. Furthermore, some analysts see potential for Macau operators, including Sands China, to generate strong returns in the future.

Looking ahead, analysts are forecasting top-line growth for Macau operators in 2024, with significant potential in the mass and premium mass segments. Sands China, as one of the dominant operators in those segments, could benefit from this potential growth.

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