Posted on: November 28, 2023, 05:15h.
Last updated on: November 28, 2023, 05:19h.
Dr. Miriam Adelson and the Miriam Adelson Trust are selling $2 billion worth of Las Vegas Sands (NYSE: LVS) — a transaction that will not generate any proceeds for the gaming company her late husband, Sheldon Adelson, founded.
Bank of America Securities and Goldman Sachs are joint book-running managers for the share sale.
In connection with the Offering, the Selling Stockholders and certain related trusts are expected to enter into lock-up agreements for a period of 365 days from the pricing date of the Offering, during which time they will be restricted from engaging in certain transactions with respect to shares of the Company’s common stock,” according to a statement issued by the Las Vegas-based casino operator.
While Sands isn’t receiving cash by way of Adelson’s share sale, the gaming company said it will repurchase up to $250 million of the shares being sold, potentially cushioning some of the blow from a $2 billion sale. Interestingly, the operator recently announced plans for a $2 billion share repurchase program. Shares of the gaming stock slipped 4.60% in after-hours trading on news of Adelson’s sale.
Miriam Adelson Still Largest Sands Investor
In mid-2019 amid his battle with non-Hodgkin’s lymphoma, Sheldon Adelson transferred millions of shares of Sands equity to his wife. That made her the richest Israeli — she has dual US/Israel citizenship — a status she retains to this day.
Sheldon Adelson, along with a small number of other gaming scions, is widely viewed as one of the architects of the integrated resort structure that helped the casino industry morph from being dependent on gaming revenue to realizing billions of dollars in annual sales derived from conventions, dining and entertainment. He was the also the first US gaming executive to see the potential of Macau where Sands China is now the largest operator.
He died in January 2021 and was succeeded at the helm of LVS by Rob Goldstein. At that time, the conventional wisdom was that Miriam Adelson and her family would not trim their stake in the company. Prior to today’s announcement, she and her eponymous trust controlled 57% of the shares outstanding.
That works out 435.62 million shares, according to Finviz data. Based on today’s closing price of $47.66, a $2 billion sale works out to be 41.96 million shares, meaning Adelson’s Sands stake will be reduced to 393.66 million shares.
Potential Uses for thee Cash
While she’s largest Sands shareholder, Miriam Adelson is not involved in day-to-day operations at the gaming company. She doesn’t even have a board seat, though her son-in-law, Patrick Dumont does. He’s also chief operating officer and president of the Parisian Macau operator.
As for she could deploy the incoming capital, neither she nor the company commented to that effect and they are not legally obligated to do so.
It’s possible that Miriam Adelson will direct some of that cash to pro-Israel causes and charities and it wouldn’t be surprising if GOP candidates and the Republican National Committee (RNC) reach out to here given her track record of donations to the party.