Houston-based entrepreneur Tilman Fertitta has acquired 6.9 million shares in Wynn Resorts Ltd., which equates to an ownership stake of about 6.1 percent, per filings with the Securities and Exchange Commission (SEC). Elaine Wynn remains as the largest shareholder with 8.84 percent of the company’s stock.
The filings were dated October 19, which was also the same date in which Fertitta was granted approval from the Clark County Commission to build his proposed 43-story casino resort on the Las Vegas Strip.
Records indicate that Fertitta submitted the purchase with a 13G filing, which indicates a passive investment, meaning that he doesn’t plan to be involved in the company’s day-to-day operations.
Fertitta, who also owns the Golden Nugget in downtown Las Vegas along with the NBA’s Houston Rockets franchise and a slew of nationwide restaurant chains, now becomes the second largest individual Wynn shareholder, behind only Elaine Wynn.
Exact details of the transaction were not disclosed, but in terms of value, now might have been one of the most opportune times to buy in, given that Wynn has seen its stock price decline over the past year or so after eclipsing a price of $98 last November.
In the days since the news first broke, the stock has seen a healthy resurgence, having jumped over 13 percent at the time of writing.
When asked about the deal, a Wynn spokesman merely confirmed that the company was aware of the transaction; many expect the company to comment further on the matter when it reports third-quarter earnings on November 9. Fertitta and his team opted not to comment.
Michael Lawton, a spokesman for the Nevada Gaming Control Board, told the Nevada Independent that anyone who purchases more than a 5 percent stake in a gaming company that is traded publicly must disclose the purchase in a letter to the Nevada Gaming Commission, with SEC filings included.
Per Lawton, if an individual wishes to acquire 10 or more percent of a company, they must apply for regulatory approval or request a waiver, which would allow the individual to then acquire up to 29 percent. This may soon become important, as some financial analysts have speculated that Fertitta may push for a full acquisition bid in the near future.
Max Marsh and John DeCree, analysts for CBRE, said in a note to investors that Fertitta’s investment record is very aggressive, and history would indicate that he is planning something bigger than just a 6 percent stake.
The pair noted that a bigger move could be on the horizon, especially when you take into account his “prior acquisitions, including McCormick & Schmick’s and Morton’s Restaurant Group, both of which started with 13G filings that culminated in a full takeover.”
Despite his other ventures, Fertitta appears to be doubling down on Las Vegas, having purchased a 6-acre plot on the corner of Harmon Avenue and Las Vegas Boulevard for a cool $270 million over the summer, on which he plans to build his aforementioned casino resort.
According to construction proposals submitted to the county, the resort will feature over 2,400 rooms as well as all the accouterments one would expect for a modern-day Strip property, including dining options, convention space and entertainment venues.