Steve Wynn Sells All Shares In Wynn Resorts
Prominent Las Vegas tycoon Steve Wynn has been synonymous with the world of casino entertainment ever since having founded Wynn Resorts in 2002, but Wynn is currently dominating news headlines for a much more unsavory reason, having been accused of sexual misconduct earlier this year.
Following the allegations, Wynn proceeded to sell his entire stake of shares in Wynn Resorts for an estimated $2.14bn. Even before having put his shares to the open market as well as on offer to other stakeholder operators, Wynn opted to step down from his position of CEO of Wynn Resorts during February of this year, no doubt in an effort to save the face of the brand by no longer being associated with senior management at the company.
Galaxy Entertainment Scoops Shares
Wynn Resorts recently issued a statement confirming the state of affairs and saying that around 8 million of Wynn’s shares in the company would be sold at approximately $175 a share, to two existing investors. Wynn also sold around 4 million shares on the open market for $180 a share. One of the major existing investors cited by the statement is major Macau casino operator Galaxy Entertainment, who had reportedly agreed to fork out a cool $927.5m for around 5 million shares in Wynn Resorts.
Wynn confirmed that the two deals, combined with previous open market sale of shares, effectively eliminated his ownership in Wynn Resorts as he himself held no further shares.
Making Market Sense
Galaxy vice-chairman, Francis Lui, confirmed Galaxy’s new ownership of a large chuck of Wynn Resorts, saying that the acquisition of the shares made exceptional market sense as Wynn Resorts is a globally recognized and highly esteemed casino entertainment entity and that the assets presented the investor with significant development possibilities going forward.
J.P. Morgan Issues Positive Report
Major Wall Street role-player J.P. Morgan has confirmed Galaxy’s optimism, saying that Wynn Resorts will without a doubt be able to overcome its previous owner’s misconduct due to the popularity and strength of the brand in general. J.P. Morgan recently raised its target share price from $196 to $214, confirming that acquisition of shares in Wynn Resorts now carried an overall lower regulatory risk following the sale of all shares held by Steve Wynn.
A spokesperson at J.P. Morgan put it quite eloquently to the press when he said that the Wall Street firm saw multiple ways to win in this particular situation.