Still Asia focus for LVS post chairman death, says Bernstein
“We expect Las Vegas Sands to not have any material change in strategy. The focus remains developing Macau and Singapore,” said a note from Bernstein.
The death of Sheldon Adelson, founding chairman of casino operator Las Vegas Sands Corp, and the elevation days before, of Rob Goldstein as acting chairman and CEO, “should not give investors alarm,” said analysts Vitaly Umansky, Kelsey Zhu and Tianjiao Yu.
The investments in those two Asian markets have still been outperforming in revenue terms the firm’s venues in Las Vegas, Nevada, even during the pandemic.
In Singapore, a group unit called Marina Bay Sands Pte Ltd runs its Marina Bay Sands venue. There, the group has given a commitment to the government to make a fresh SGD4.5 billion investment in Marina Bay Sands, announced in 2019, at the same time its local casino rights were extended to 2030.
Sanford Bernstein noted the Adelson family currently held a 56.6% controlling interest in Las Vegas Sands. “Sheldon Adelson’s direct ownership is under 9 percent,” stated Sanford Bernstein.
“We do not believe there are any major estate tax issues that would force sale of… Las Vegas Sands stock and we do not expect the family to reduce ownership,” added the brokerage’s analysts.
Patrick Dumont – a son-in-law of Mr Adelson, and chief financial officer of the group – would “remain the key management and board figure representing the interests of the family”.
Mr Goldstein, president and chief operating officer for more than four years previously – had been with the Sands brand “since 1995”, said the brokerage, and would stay in day-to-day charge, while in likelihood preparing Mr Dumont for a larger role.
Mr Goldstein was “well known and largely accepted by the investor community and is well-known to Macau and Singapore authorities,” stated Sanford Bernstein.
