Tilman Fertitta Becomes One of Largest Wynn Shareholders
The legendary Tilman Fertitta has been looking to get even more active on the Strip, and his latest moves all seem to come up wins for him. His latest involvement in Wynn might spell good news for both sides.
A Securities and Exchanges Commission (SEC) filing from Monday indicated that the billionaire Tilman Fertitta has now acquired 6.9 million shares in Wynn Resorts Ltd. making him the second-largest individual shareholder in the company. This gives Fertitta a 6.1% stake in Wynn, and the date from the filing coincides with the date Fertitta received approval for his Strip hotel and casino plans.
According to a CNBC report, Wynn’s shares rose 4.2% in the premarket, following the news of Fertitta’s involvement, and a Las Vegas Review-Journal article stated that closing Monday, shares were up 9.6%. However, with how significantly the company’s stock price slid – more than 30% compared to last year – it’s not enough to draw any conclusion on what this uptick might mean in the near future.
It’s still important to note that while no official information was given on how much Fertitta has paid for his ownership, some rough estimations put it around the $400 million mark, which means that only Monday’s 9.6% uptick made Fertitta close to $40 million if the estimation is anything to go by. Plus, the company’s quarterly financials are coming up, so more movement can be expected then as well.
Grand Plans Underway
Wynn’s financials are probably not going to be earth-shattering, as its Macau arm is still struggling, with China’s zero-COVID measures negatively impacting the business. The company has been steadily supporting its Macau operations, and it has been costing it quite a lot of money, with $500 million being loaned just this summer. This also showed during Macau’s latest round of public bidding for a casino concession in the region, when Wynn was the first operator to submit its concession bid.
While this might be dampening the expectations for Wynn’s latest financial results, Fertitta actually brings a breath of fresh air to the conversation, albeit with news that doesn’t impact Wynn specifically. In July, Fertitta bought more than six acres on the Strip for $270 million, along with a few businesses on the premises. The idea was the site would be home to a new upscale hotel and casino complex, and his plan to do so has been approved.
The project would see the creation of more than 2,400 rooms for the hotel portion, 2,500 seats for the theatre, multiple restaurants, a spa, and even an auto showroom. The plan also includes dedicated salons, equipped with a bar and a lounge area for high rollers. Although the scale here is indeed impressive, this is simply another investment for Fertitta, who also owns the Golden Nuggets casinos, as well as multiple restaurant brands, all incorporated under his corporate empire – Fertitta Entertainment.
Source: Read Full Article