Steve Wynn Plans To Cash Out Of His Las Vegas Casino CompanyBillionaire Files To Sell Shares In Wynn Resorts |
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Disgraced Las Vegas casino mogul Steve Wynn is heading to the cashiers cage.
Wynn Resorts, the company he founded in the early 2000s, announced Wednesday that Wynn will be selling potentially all of his nearly 12 percent stake in the company, valued at about $2.2 billion. Wynn was rocked by sexual misconduct allegations in a Wall Street Journal report back in January. He has denied wrongdoing, but did step down as CEO.
Wynn, 76, was accused by multiple female employees of intimidation, harassment and assault in the workplace. In once instance, he reached a $7.5 million settlement with a former manicurist.
In a separate regulatory filing, the firm said Wynn immediately plans to cut his stake to under eight percent. The process of fully divesting from the company, one of the largest casino developers in the world, would take months. The company said that Wynn “will seek to conduct such sales in an orderly fashion and in cooperation with the company.”
“No assurance can be provided that Mr. Wynn will elect to sell common stock, or the timing or terms of any such sale,” the casino operator added in the regulatory filing.
According to a report from Bloomberg, the move by Wynn could make the firm vulnerable to a takeover, which has been speculated before in the aftermath of the Journal report.
Wynn Resorts said that further legal and regulatory trouble engulfing its founder could impact its casino licenses. Regulatory reviews are ongoing in Nevada, Macau and Massachusetts, where Wynn Resorts is building a $2 billion casino outside Boston.
“A number of lawsuits have been filed against the company and our board of directors arising out of the allegations against Mr. Wynn, and such claims present a number of risks, including distraction of management, assertions that could affect our reputation, and potential legal liabilities,” the company said. “The foregoing investigations, litigation and other disputes…may also lead to additional scrutiny from regulators, which could lead to investigations relating to, and possibly a negative impact on, the company’s gaming licenses and the company’s ability to bid successfully for new gaming market opportunities.”
In other words, the company is facing an existential threat.
Shares of the company fell four percent on news of Wynn’s plan to divest.
Wynn Resorts defended its founder when he announced his departure as CEO and chairman back in February. The company said he “created modern Las Vegas.” Wynn was behind not only his flagship Wynn Las Vegas and the adjacent Encore, but also the Mirage and Bellagio.
“It is with a collective heavy heart, that the board of directors of Wynn Resorts today accepted the resignation of our founder, CEO and friend Steve Wynn,” said non-executive board chairman Boone Wayson. “Steve Wynn is an industry giant…He played the pivotal role in transforming Las Vegas into the entertainment destination it is today.”
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