GGRAsia – Fund manager Capital Group increases its stake in Wynn Macau Ltd
Fund manager Capital Group increases stake in Wynn Macau Ltd
US-based Capital Group Companies Inc has spent around HKD 33.4 million ($4.29 million) to acquire 4,578,800 shares of Hong Kong-listed Macau casino company Wynn Macau Ltd .
The exercise, which ended Tuesday at an average price of HKD 7.3010 per share, lifts Capital Group’s long position in Wynn Macau Ltd to 6.05% from 5.96%, but its stake is still below what it was at the end of September.
Investment management firm Capital Group had more than US$2.4 trillion under management at the end of 2020, according to its website.
Wynn Macau Ltd controls the Wynn Macau gaming complex (pictured) on the Macau Peninsula and the Wynn Palace in the city’s Cotai district. The parent company of the company is the American company Wynn Resorts Ltd.
Late September – after the release of a Macau government consultation paper on the future of the city’s gaming industry coincided with the Macau Gaming Company stock prices fall – Capital Group had reduced its stake in Wynn Macau Ltd by 7.20%.
Wynn Macau Ltd’s share price rose 11.91% on Monday in Hong Kong as part of a general gathering of Macau gambling stocks listed there. The Macau government had announced after the market closed the previous Friday (January 14), contour Macau’s bill to provide a new regulatory framework for the city’s casino industry.
The current six concessions, including one held by an associate company of Wynn Macau Ltd, are due to expire on June 26 this year, and the city government has said the new law must be in place before a further appeal for bids for gaming concessions can be held.
Moody’s Investors Service Inc said in a Wednesday report that the bill – filed Tuesday via the Macau Legislative Assembly website, and due to have a first reading and first vote in the assembly Monday (January 24) – “removes significant regulatory uncertainties”.
The credit rating institution said the benefits included the bill specifying that there would be no more than six concessions under any new issuance of gambling rights. Moody’s believed this likely meant that existing dealers would be allowed to remain in the market.