Steve Wynn sells Wynn Resorts stake, Galaxy buys in

Steve Wynn, the former chief executive of Wynn Resorts Ltd, has disposed his entire 11.8 percent stake in the firm for $2.1 billion in a dramatic exit of the casino and hotel enterprise he founded over 16 years ago.

In an unexpected separate move, Macau casino operator Galaxy Entertainment said it has agreed to buy 5.3 million primary shares of Wynn Resorts at $175 per share, giving them around a five percent stake in the operator which has resorts in Las Vegas and Macau.

Galaxy is one of six licensed operators in the world’s largest gambling hub of Macau and competes with Wynn along with Sands China, MGM China and Melco Resorts.

The casino mogul’s share sale comes a week after Wynn Resorts said Steve and Elaine Wynn, who has a 9.26 percent stake, had scrapped a shareholder agreement that prevented them from selling their stakes.

Steve Wynn resigned as CEO of the Las Vegas-based company last month, following claims he subjected women who worked for him to unwanted advances. He has denied the accusations.

In a joint statement by Galaxy and Wynn on Wednesday, Galaxy vice chairman Francis Lui said it was a unique opportunity to “acquire an investment in a globally recognized entertainment corporation with exceptionally high quality assets and a significant development pipeline.”

A Galaxy spokeswoman could not comment further on whether Galaxy would look to increase its holding in the future.

Wynn Resorts CEO Matt Maddox said Galaxy shared many of the same core “operating philosophies and values.”

The announcement also follows the settlement two weeks ago of long standing litigation between Wynn Resorts and Universal Entertainment Corp.

Wynn said two long-term institutional investors, currently holding stakes in Wynn Resorts, have agreed to purchase the remaining eight million shares held by Steve Wynn also at $175 a share.