According to Wynn Resorts press, former chief executive of Wynn Resorts and casino magnate Steve Wynn sold his remaining eight million shares in the company, a move that saw him sever his ties with the gambling powerhouse that he started 16 years ago. Wynn sold his shares – amounting to 11.8 percent stake in the firm – for $2.1 billion just a day after he sold about 4.1 million of his shares for approximately $740 million.
The shares sale also comes a week after Wynn Resorts reported that Mr Wynn and his ex-wife, Elaine Wynn had scrapped a shareholder agreement and this denied them the right to sell their stakes. Elaine Wynn has a 9.26 percent in the company.
Galaxy Entertainment, a renowned Macau casino operator and one of Wynn’s competitors offered to buy 5.3 million Wynn Resorts shares for $175 a share during the same period. The agreement will give Galaxy Entertainment a 5 percent stake in the company that currently operates resorts in both Macau and Las Vegas.
Galaxy Entertainment and Mr Wynn delivered a joint statement after the sale on Wednesday with Francis Lui, Galaxy Entertainment’s vice chairman pointing out that the company had been given the opportunity to “acquire an investment in a globally recognized entertainment corporation with exceptionally high-quality assets and a significant development pipeline.” Matt Maddox, a Wynn Resorts’ chief executive pointed out that they are welcoming the sale since both companies have similar core “operating philosophies and values.”
Following a Wall Street Journal report that mounted a number of sexual misconduct allegations against him, on February 6 Steve Wynn stepped down as CEO and chairman of the casino and hotel company. Wynn, of course, denied the allegations with the same Wall Street Journal quoting him saying:
“The idea that I ever assaulted any woman is preposterous.”
Wynn Resort shares have already taken a hit, a four percent drop to be precise, after news of Steve Wynn’s plan to divest reached the public.