Galaxy Entertainment buys 4.9pc stake in Wynn Resorts for US$927.5 million

Wynn Resorts, the majority shareholder of Wynn Macau and operator of hotels and casinos in Las Vegas, has agreed to sell 5.3 million new shares to Galaxy Entertainment Group for US$927.5 million, in connection with Steve Wynn’s move to sell his entire stake after stepping down as CEO earlier this year.

Wynn Resorts said in a voluntary announcement on the Hong Kong stock exchange on Friday that the share sale to Galaxy Entertainment was priced at US$175 a share. The selling price represented a discount of 2.7 per cent from the US$180 per share price at which the former chairman sold his 4.1 million shares in the open market on Wednesday. On Thursday, Wynn Resorts closed at US$175.54, down 1.87 per cent for the session.

In February, Wynn resigned as chairman and chief executive amid accusations of sexual misconduct. He has denied the accusations. The sale to Galaxy Entertainment also came amid a separate sale of his remaining eight million shares to two “long-term institutional investors”, also at US$175 per share.

With these transactions, the former chairman has exited his entire ownership in Wynn Resorts, the company said in a press release on Thursday.

“This is a unique opportunity to acquire an investment in a globally recognised entertainment corporation with … high quality assets and a significant development pipeline,” said Francis Lui, vice-chairman of Galaxy Entertainment in a joint press statement detailing the transaction.

The 5.3 million new shares represent 4.9 per cent of Wynn Resorts’ total issued share capital upon deal’s completion.