Galaxy not to raise stake in Wynn Resorts

Galaxy Entertainment, the Hong Kong-based entertainment, is not going to increase its stakes in the scandal-ridden Wynn resorts. Galaxy group Chairman Lui Che-Woo refuted speculations that the company is planning to increase its stake in Wynn Resorts from its current 4.9 per cent stake.

Galaxy Entertainment acquired the stake in Wynn in an April move after founder Steve Wynn announced that he was selling off his holdings. Galaxy acquired 5.3 million shares at US$172 a share. “So long as Elaine Wynn remains the largest shareholder, we’re confident that nothing can go wrong. After all, it’s only 4.9 per cent. We’re just here to receive dividends,” Lui told Bloomberg in an interview.

The chairman also said that Galaxy is waiting to see how the Hainan island projects develop, even if there was recent speculation that casinos would not be allowed in the territory. “It’s not easy to start in Hainan unless you are rich, brave and able to see the picture very clearly. We will just wait for policies to become clear,” he said.