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Steve Wynn Sells the Last of His Stake in Namesake Casino

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The last of Steve Wynn’s stakes in his casino company, Wynn Resorts, have been sold. An investor who operates Macau casinos is their newest stake holder, said the company.

Back in February, Wynn put in his resignation as CEO of Wynn Resorts, after allegations of sexual misconduct  against him were publicized by the Wall Street Journal. On Thursday, March 22, he made a private transaction in which Wynn sold 3 million of his shares in the company’s stock for around $530 million to institutional investor T. Rowe Price. According to a filing by Wynn, he also sold another 5 million shares for $875 million to Capital Research and Management Co., which is also an institutional investor.

On Wednesday, March 21, Wynn began the selling of his shares with a sale of 4 million of them on the open market. After all was sold and done, Wynn walked away with a whopping $2.1 billion for his stake.

CNN Money reports, “The sales had pushed down the value of the stock nearly 5% in the last two days, although shares were rebounded about 3% in morning trading Friday. Wynn has continually denied the allegations made against him, calling them ‘preposterous.’ When he resigned from the company he said that he intended to continue to hold his shares. The allegations against Wynn have prompted investigations by gaming regulators in Macau, Nevada and Massachusetts, which could put some of its casino licenses at risk. The company declined to comment on Wynn’s sale. It did announce it sold an additional 5.3 million shares of its stock for $927.5 million to Galaxy Entertainment Group, which operates three major casinos in Macau.”

The current CEO of Wynn Resorts, Matt Maddox, said, “It is an honor to have such a distinguished company as Galaxy Entertainment as a shareholder.”

In a statement issued by Wynn Resorts, Galaxy’s vice chairman Francis Lui said, “This is a unique opportunity to acquire an investment in a globally recognized entertainment corporation.”

The proceeds from the sale of that stock will be used by the company to pay off a short-term debt worth $800 million.

By Charles Bernstein

 

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