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China – Sands rules out any involvement in mergers and acquisitions

By - 23 April 2019

With a host of rival operators currently tipped to be on the verge of takeover, most notably Wynn Resorts and Caesars Entertainment, Las Vegas Sands’ top executives have ruled out the possibility of any mergers or acquisitions on the horizon.

The operator has said instead it is ‘building not buying’ and wants to focus on investing on its existing portfolio with expansion in Singapore and Macau earmarked alongside its desire to develop the potential Casino IR in Osaka, Japan.

Las Vegas Sands’ Executive Vice President & Chief Financial Officer Patrick Dumont said: “I don’t think you’ll see us do M&A in the near term. Our highest and best use of capital is having our Chairman develop new high-growth properties. We look at everything through that lens. As you look at the expansion Singapore that we’ve been very fortunate to reach agreement on, and you look at the investment regarding some of the new developments in Macao, activating some old assets as well as refreshing the Sands Cotai Central building into The Londoner, we think new development and renovations is the best way for us to deploy capital.

“I think for us it’s really tough to get comfortable with an M&A opportunity given how successful we have been doing what we’ve been doing. I think it’s hard to look at those opportunities and say that there are a better use of our capital than what we can do with our development capability as well as returning capital to shareholders, either through the dividend program or through repurchases. Our focus is on the development of our existing markets in Macao, which has been a tremendous market for us historically and we believe will be even stronger in the future as well as in Singapore as well as in some of the new jurisdictions in Asia.”

Sands President & Chief Operating Officer Rob Goldestein added: “We’ve learned over the years that buying a few things, really focusing and getting it right, and having long-term growth in markets and finding the right opportunities to have that at mode approach is much more effective than just buying and selling. I think we want to grow. Singapore’s evidence of that. We have a few things that we’re looking at right now that I think are extraordinary opportunities for the company. But it’s hard to emulate Macao and Singapore and perhaps Japan. These are extraordinary opportunities.

“M&A doesn’t offer the opportunities to us that Japan could or other markets could. So our commitment to Japan is immense. It will be lots and lots of rooms many, many rooms,” he added. “There will be lots of retail. There will be lots of MICE, far beyond what people understand we’re thinking about for Japan. The government understands that. But we are fully committed to be in Osaka. We’re fully committed to make a commitment to do very well there.”

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