The Chairman of Macau gaming giant Galaxy Entertainment Group (GEG), Lui Che Woo, says his company has no immediate plans to increase its stake in fellow Macau concessionaire Wynn Resorts, insisting “we’re just here to receive dividends.”
However, he hinted that the presence of Elaine Wynn as Wynn Resorts’ biggest shareholder was key to maintaining the status quo.
The 88-year-old gaming magnate briefly discussed the investment during an interview with Bloomberg this week after Galaxy purchased a 4.9% stake in Wynn Resorts in March for US$927.5 million.
“So long as Elaine Wynn is the largest shareholder we’re confident that nothing will go wrong. Our investment won’t affect their operations,” he said.
“After all it’s only 4.9%. We’re just here to receive dividends.”
Lui added that when Galaxy was a much smaller company, Wynn Resorts founder Steve Wynn had told him, “In the future, Macau will be yours and mine.”
Ironically, Galaxy acquired its 4.9% stake on the same March day that Steve Wynn reached an agreement with two of Wynn Resorts’ long-term institutional investors to sell his remaining shares, having previously stepped down as Chairman and CEO amid sexual misconduct allegations.
Explaining Galaxy’s decision at the time, GEG Vice Chairman Francis Lui said, “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.”
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