MARKET REACTION TO THE LOSS
Analysts have been quick to assess the impact on Las Vegas Sands following the passing of CEO/Chairman Sheldon Adelson with the view being that control of the company will stay with the Adelson family with current President and Chief Operating Officer Rob Goldstein expected to guide the company into a new era of online sports betting.
Morgan Stanley analyst Thomas Allen noted the company already announced a temporary succession plan with Mr. Goldstein becoming Chairman/CEO, which he expects will become permanent.
"Over time, we would not be surprised to see a member of the Adelson family take over one of these roles, specifically with CFO Patrick Dumont a logical potential candidate,” he explained.
Mr. Dumont is Adelson’s son-in-law. As well as being CFO, he oversaw the Adelson’s $140m takeover of the Las Vegas Review-Journal newspaper in 2015.
“With regard to the stock, Mr. Adelson only directly owns nine per cent of the company's shares, with the majority of the family's 57 per cent ownership either owned by his widow Dr. Miriam Adelson and in family trusts," Mr. Allen added.
He doesn't think that the market will see a meaningful divestiture of stock and instead dividends will return (at lower level than 2019) once Sands’ business has a clearer path back to normal post-COVID and the balance sheet is slightly improved.
Writing for Seeking Alpha, Howard Jay Klein, said that with Mr. Adelson being anti-online sports betting and gaming, Las Vegas Sands could now see ‘a pivot into that business segment with a sports betting partner of substance.’
privacy as they mourn Mr. Adelson's passing. A funeral will be held in Israel, the birthplace of Dr. Miriam Adelson, with plans for a memorial service held in Las Vegas to be announced at a later date.”
American Gaming Association (AGA) President and CEO Bill Miller added: “Te passing of Sheldon Adelson is a tremendous loss to the gaming community. Mr. Adelson, founder and chairman of Las Vegas Sands, was a true visionary and pioneer of modern casino gaming for more than three decades. From Las Vegas and Pennsylvania to Macao and Singapore, his mark is indelible.
“I had the pleasure of knowing Mr. Adelson for more than 15 years, long before joining the American Gaming Association (AGA). It is his leadership and generosity that stand out the most to me. Tere’s no greater example of this than serving his community and prioritising his employees’ well-being during the last year as
“It is his leadership and generosity that stand out the most to me.
There’s no greater example of this than serving his community and prioritising his employees’ well- being during the last year as our
country and industry grappled with the global pandemic.”
Bill Miller, President, American Gaming Association
our country and industry grappled with the global pandemic. On behalf of the AGA, I share our deepest sympathies with Dr. Adelson, the Adelson family, and our gaming colleagues at Las Vegas Sands. May his memory be a blessing."
“Adelson leaves a healthy company we believe that's vastly undervalued. We suspect that significant chunks of equity held by the family will migrate to the market over time,” he said. “The result will be bullish for the stock with a wider dispersion over both institutional and retail holders. The controlling equity of LVS will evolve into the family foundation much the same way as that of MGM Resorts International, Kirk Kerkorian’s Tracinda Holding entity.
“After his death, Kerkorian’s will specify an “orderly disposition” of his stock” over a period of time that would not disrupt its normal trading patterns. It will take time for the market to sense how much of Adelson’s legacy will remain in place and where new directions will emerge to change directions.
“The most immediate of these we know is the probability that LVS will now become a player in sports gambling and the online casino space. Goldstein already has held preliminary meetings with possible partners. My sense is that a deal now will move much faster than anticipated. This will be highly bullish for the stock given LVS’ strong balance sheet enabling it to ramp fast even in an already crowded field.”
NEWSWIRE / INTERACTIVE / MARKET DATA P23
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