Steve Wynn now free to sell his stake in Wynn Resorts Limited

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American casino magnate Steve Wynn (pictured) may now reportedly be seeking to offload his around 12% stake in Wynn Resorts Limited following last week’s inking of a settlement agreement with former majority shareholder Universal Entertainment Corporation that canceled a previous stockholders arrangement.

According to a Thursday report from The Wall Street Journal newspaper, Wynn previously served as Chairman and Chief Executive Officer for Wynn Resorts Limited but resigned early last month amid multiple allegations of sexual misconduct. Despite stepping down, he was subsequently forbidden from offloading his holdings in the Las Vegas-based casino operator due to the terms of a 2010 agreement with Universal Entertainment Corporation while this same deal also prevented the 76-year-old billionaire’s former wife, Elaine Wynn, from selling any of her approximate 9% stake.

However, the March 8 deal with Tokyo-headquartered Universal Entertainment Corporation purportedly saw Wynn Resorts Limited agree to hand over about $2.4 billion to settle claims that it had illegally redeemed its past partner’s 20% stake in 2012. The resolution reportedly moreover released Wynn and his ex-wife from first having to obtain the permission of the Japanese gaming machine manufacturer before selling any of their stakes.

Citing a Thursday filing from Wynne Resorts Limited, The Wall Street Journal reported that the casino firm’s former boss is now free to sell ‘all or a portion’ of his holdings to private investors or on the open market ‘in an orderly fashion and in cooperation with the company’.

Should either of the Wynns decide to offload any of their shareholding in Wynn Resorts Limited, the newspaper reported that the firm could be on the hook for up to $3 billion in additional payments. This is purportedly due to clauses in its contracts with investors that would see it required to buy back bonds if any one entity ends up owning more than the pair’s current combined 21% stake.

But, The Wall Street Journal reported that Wynn Resorts Limited downplayed this eventuality earlier this week by declaring that  ‘the most likely scenario’ would see it required to hand over only around $500 million, which the casino giant ‘could finance or pay off’.

Steve Wynn now free to sell his stake in Wynn Resorts Limited was last modified: March 16th, 2018 by Adam Morgan