Billionaire Sheldon Adelson has doubled down on his half-billion dollar bet this fall on Las Vegas Sands Corp. in a plan intended to keep the casino company from defaulting on its debt and falling into bankruptcy, CNN reported.
The plan for infusing $2.14 billion in new capital into the company dramatically reduces Adelson's controlling stake even as he agreed to invest another $525 million.
The casino giant with operations in Las Vegas and Macau will not seek shareholder approval for the emergency plan it announced Tuesday, even though it more than doubles the number of outstanding shares, massively diluting their value for current shareholders, claiming an exception in New York Stock Exchange rules.
The company warned that any delay caused by getting shareholder approval "would seriously jeopardize the ability to complete the offerings as well as the financial viability of the company."
The transactions are set to close Friday.
Trading in the Las Vegas-based company's stock on the New York Stock Exchange was halted briefly Tuesday. It closed down 33 percent, or $2.66, at $5.34, after trading resumed. The stock has traded between $4.32 and $122.96 during the past 52 weeks.
Analysts greeted the plan with caution.