Sands China Contemplates Resuming Dividends in 2025, Predicts Financial Advisor
In a series of discussions and reports, analyst Vitaly Umansky from Seaport Research Partners has provided insights into the current and future prospects of Sands China and its parent company, Las Vegas Sands Corp.
According to GGR Asia, Umansky's notes to investors on Friday highlighted the potential for Las Vegas Sands to increase its ownership stake in Sands China, with a prediction that it could reach up to 80%. This increase, if realised, would further solidify Las Vegas Sands' control over its Macau-based subsidiary.
On the other hand, Umansky did not mention any potential increase in Las Vegas Sands' stake in Sands China beyond 75% in the discussed paragraph. However, he did predict a possible growth from the current 71% to 75% or more.
Regarding the financial aspect, Umansky expects a restart of dividends for Sands China in 2025. However, he suggested that the company may prioritize share buybacks over dividend increases. No new information about a possible restart of dividends for Sands China in 2023 was provided.
Meanwhile, no new information about a buyout of minority shareholders' interest or delisting from the Hong Kong Stock Exchange was provided. Sands China is expected to retain its listing in Hong Kong to reaffirm its commitment to the region.
In terms of business expansion, Umansky predicts that Las Vegas Sands is likely to increase its stake in Sands China, potentially growing it from 71% to 75% or more. Additionally, further business moves by Las Vegas Sands, including potential share buybacks and stake increases in Sands China, may be announced in 2025.
On a separate note, Umansky predicts that Sands China may restart its dividend in 2023, contingent on the performance of Londoner. The partial opening of Londoner is expected by the end of this year, according to Robert Goldstein, Las Vegas Sands' chairman and CEO. Umansky also suggested that the Londoner resort may open slightly earlier than December.
Lastly, Las Vegas Sands has reaffirmed its support for the legalization of gambling in Texas. If Texas expands its gambling sector, an estimated 70,000 new permanent jobs are expected to be created. Las Vegas Sands met with North Texas leaders to discuss the potential delivery of resort-style gambling to the state.
These predictions and discussions provide a glimpse into the possible future of Sands China and Las Vegas Sands Corp, offering investors and stakeholders valuable insights into the company's strategic direction.
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