Miriam Adelson to Sell $2 Billion in Las Vegas Sands Stock

Posted on: November 28, 2023, 05:15h

Last updated on: November 28, 2023, 05:19h

Dr. Miriam Adelson and the Miriam Adelson Trust have announced plans to sell $2 billion worth of Las Vegas Sands (NYSE: LVS) stock. This transaction will not provide any proceeds for the gaming company, which was founded by her late husband, Sheldon Adelson.

Bank of America Securities and Goldman Sachs will serve as joint book-running managers for the share sale. The selling stockholders and certain related trusts are expected to enter into lock-up agreements for a period of 365 days from the pricing date of the offering, during which time they will be restricted from engaging in certain transactions with respect to shares of the company’s common stock.

Although the share sale will not generate cash for Sands, the gaming company has announced plans to repurchase up to $250 million of the shares being sold. This move may help offset some of the impact of the $2 billion sale. Interestingly, the operator recently revealed plans for a $2 billion share repurchase program. However, the news of Adelson’s sale caused shares of the gaming stock to slip 4.60% in after-hours trading.

Despite the sale, Miriam Adelson will remain the largest Sands investor. In mid-2019, she became the primary shareholder after her husband transferred millions of shares of Sands equity to her, making her the richest Israeli. Today, she and her eponymous trust control 57% of the outstanding shares.

This $2 billion sale will reduce her stake to 393.66 million shares from the previous 435.62 million shares.

As the largest Sands shareholder, Miriam Adelson is not involved in day-to-day operations at the gaming company, nor does she have a board seat. Patrick Dumont, her son-in-law, holds the role of chief operating officer and has a board seat, but neither she nor the company has commented on how the incoming capital may be used.

It is possible that Miriam Adelson may direct some of the cash towards pro-Israel causes, charities, GOP candidates, and the Republican National Committee, given her track record of donations to the party. However, no official information has been provided regarding the intended use of the funds.