Sands China Plans to Resume Dividends in 2025, Analyst Suggests
Date: 2024-08-26 Author: Alex Crawford Categories: EVENTS
A deal to buy out minority stakes in Sands China or a possible delisting from the Hong Kong Stock Exchange is unlikely, an analyst said while discussing the current and future prospects of the well-known Macau casino operator.
Seaport Research Partners analyst Vitaly Umansky shared information about meetings with Sands China's parent company, Las Vegas Sands Corp, as part of the annual Seaport 2024 summer conference. In a note to investors issued on Friday, Umansky emphasized that such scenarios are unlikely "at this stage." According to GGR Asia, the expert also mentioned possible strategic moves for the company in 2025.
Umansky suggested that Las Vegas Sands will likely increase its stake in Sands China. According to him, the company may consider increasing its stake in the Macau casino operator from 71% to 75% or more. In addition, the analyst noted that based on discussions with Las Vegas Sands, the company will likely prioritize share buybacks — especially at current prices — over increasing dividends.
“In addition, Las Vegas Sands will likely seek to increase its stake in Sands China from approximately 71% at the moment to more than 75%,” Vitaly Umansky emphasized.
The resumption of dividend payments is expected in 2025
Umansky also added that Sands China will likely maintain its listing in Hong Kong, which confirms the company's commitment to the region. He noted: “At this stage, a scenario of a complete buyout of minority shareholders of Sands China and delisting of Sands China Ltd. is unlikely.”
"Maintaining a Hong Kong listing demonstrates Sands' commitment to growth in China," Umansky added.
The Seaport Research Partners analyst also predicted the company could resume paying dividends next year. However, he acknowledged that this would depend on the success of the Londoner project, which is expected to partially open by the end of the year.
The partial opening of the Londoner was confirmed by Las Vegas Sands Chairman and CEO Robert Goldstein during the company's second-quarter results last month. While Goldstein hinted at a partial opening in December, Umansky said the resort could open its doors to visitors "a little sooner."
Last month, Las Vegas Sands reiterated its support for legalized gambling in Texas after meeting with local leaders. At the time, company representatives met with North Texas leaders in hopes of bringing resort-style gambling to the state. If the gambling sector expands in Texas, it is expected to create about 70,000 new permanent jobs.
