Galaxy Entertainment has bought a 3 percent stake in Wynn Resorts from the company’s founder Steve Wynn, calling the purchase a “unique investment opportunity.”
The Macau-based operator bought a total of 5.3 million shares at $175, resulting in gross proceeds of $927.5 million to Wynn.
Steve Wynn also sold a further 4.1 million shares in the open market at $180 a share and a further 8 million shares in privately negotiated transactions with existing shareholders.
As a result, Wynn has divested his entire stake in the company.
“This is a unique opportunity to acquire an investment in a globally recognized entertainment corporation with exceptionally high quality assets and a significant development pipeline,” Galaxy Vice Chairman Francis Lui said.
The announcement follows the settlement two weeks ago of long-standing litigation between Wynn Resorts and Universal Entertainment Corporation. The resolution of that litigation, combined with the new agreement with Galaxy and the liquidation of Steve Wynn’s shares in the company positions Wynn Resorts for even greater stability, strategic focus and future growth, the company said in a stock exchange filing.
Wynn Resorts CEO Matt Maddox, who took over earlier this year after Steve Wynn was forced to resign after allegations of sexual misconduct, said Wynn and Galaxy share “many of the same core operating philosophies and values.”