Sands China (1928) shareholder Waddell & Reed said it has sold its entire stake in the Macau casino operator for US$1.38 billion and plans to use the proceeds to buy shares in the US parent company.
Shareholders including Waddell & Reed are selling their holdings in the Macau casino operator for a stake in its parent, Las Vegas Sands, which also operates casinos in Singapore and is planning projects in Japan outside its US home base.
Sands China, whose revenue accounted for more than 60% of the group, reported a 50% increase in first-quarter earnings.
The investors are swapping the stakes because of the greater market liquidity of Las Vegas Sands compared with Sands China. They continue to have a positive view on the investment outlook of Las Vegas Sands and its ability to generate revenue in China and elsewhere around the world.
Chairman Sheldon Adelson said in February that Las Vegas Sands is ready to invest US$10 billion in Japan - projected to become Asia's second-largest casino market.
Japan currently bars casinos in the country and lawmakers are pushing to open up the market.
Citibank released a report on Tuesday, saying Japan's opening of the casino market will benefit Las Vegas Sands as it can be one of the first operators to get a license.