In the past month, there have been sexual harassment scandals surfacing against Steve Wynn, the founder Wynn Resorts. Female employees claimed that they had been sexually harassed by the casino mogul. Mr Wynn and the board of directors decided that it is best for Mr Wynn to step down from his position as chief executive.
As more employees stepped forward, Mr Wynn decided to sell his shares. He had a total of 11.8 million shares from Wynn Resorts. Galaxy Entertainment Group agreed to buy the 5.3M shares at the cost of $927.5 million. Apart from Galaxy, there are two other investors interested in buying the rest of his shares at $175 per share.
About Galaxy Entertainment Group
Galaxy Entertainment Group is a Chinese gaming company that is founded by Lui Che-woo. This gaming operator is the second largest operator in the world by market capitalisation. It is valued at $38 billion. The casino operator did not mention its plans with regards to purchasing the Steve Wynn’s shares.
According to Macau’s gaming regulator, the purchase by Galaxy is in order and has not breached any local laws. The Nevada Gaming Control board will also look into the transaction to ensure that Galaxy has met the requirements.
Is there a possible Takeover?
Since Steve Wynn decided to sell his entire stake, the Wynn Resorts is vulnerable to takeover attempts. According to analysists, he was the visionary, and his exit poses a challenge for the remain board members.
Should a takeover happen, Galaxy may not be involved because the company has its eyes set only in Macau. Their long-term plans are aiming for Cotai, which is considered to be the future of gaming.
Galaxy Entertainment Group has assets in Las Vegas and Boston. However, it plans to sell them concurrently. As for Steve Wynn’s sexual harassment case, it is still under investigation, and we will see how far it will go.