Will Red Rock Resorts And Deutsche Bank Part Ways?
One of the world's largest financial institutions, Deutsche Bank, has become the center of speculation over whether or not it will sell its 17 percent share of the Las Vegas-based gaming company Red Rock Resorts. Deutsche Bank is in desperate need of capital right now, and Red Rock Resort's IPO lock-up is set to expire next week, on October 24th, allowing the Germans to unload their shares if they wish.
Ken Liu, an analyst with UNITE HERE Gaming Research, told financial reporters, “Deutsche Bank is in dire need of additional capital, so we expect them to sell off their Las Vegas casino stake as soon as they can on or after October 24. Deutsche Bank investors should certainly welcome the cash infusion and capital boost that can come from selling and exiting the casino assets.”
If Deutsche Bank were to get rid of their stake in Red Rock Resorts, it would follow a recent pattern where they have been selling off shares in their other assets in exchange for cash, including China’s Hua Xia Bank and the Abbey Life mortgage company.
It's estimated that Deutsche Bank's shares in Red Rock Resorts are worth around $440 million. If they sold these shares, they would also expect to receive another $44.5 million in tax benefits from the casino company.