By Kate O’Keeffe and Aries Poon
Of DOW JONES NEWSWIRES
HONG KONG (Dow Jones)–An institutional investor in Macau casino operator Sands China Ltd. (1928.HK), the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS), is selling around US$300 million worth of existing shares, according to a term sheet seen by Dow Jones Newswires Tuesday.
The unnamed shareholder is selling 120 million shares at HK$19.50 each, according to the document. The price is a 3.2% discount to Tuesday’s HK$20.15 closing price.
The share sale represents 1.4% of Sands China’s HK$163.38 billion market capitalization, and almost 5% of its free float shares, as around 70% of the company is owned by Las Vegas Sands, according to an analyst at a U.S. brokerage.
Credit Suisse Group is the sole bookrunner on the deal, the term sheet showed.
Shares of Macau casino companies have risen sharply in 2011 as gambling revenue in the Chinese territory continues to soar, with analysts expecting it to grow to over five times that of the Las Vegas Strip this year. Shares of Macau kingpin Stanley Ho’s SJM Holdings Ltd. (0880.HK) and Wynn Macau Ltd. (1128.HK), the Hong Kong-listed unit of Wynn Resorts Ltd. (WYNN) have both risen over 50% since the start of the year. Shares of Galaxy Entertainment Group Ltd. (0027.HK), controlled by the family of Hong Kong tycoon Lui Che Woo, jumped 99% as of Tuesday’s close.
Sands China shares, which finished 2.4% lower Tuesday, have lagged the sector’s phenomenal gains with an 18% rise so far in 2011. Analysts have said a U.S. government probe of the company for possible lack of compliance with the Foreign Corrupt Practices Act could remain a drag on shares. Las Vegas Sands has said it is cooperating with investigators and has denied allegations in a separate lawsuit the company believes sparked the investigation.
