Las Vegas Sands (NYSE:LVS) shares fell after the company announced a proposed secondary public offering of $2 billion of shares of its common stock by Miriam Adelson and the Miriam Adelson Trust.
Shares fell 4.2% in pre-market Wednesday trade.
Miriam Adelson is the widow of the casino magnate Sheldon Adelson.
The funds from the sale will be used to acquire a majority stake in an unidentified professional sports team. The company will not receive any proceeds from the sale.
"We have been advised by the Selling Stockholders that they currently intend to use the net proceeds from this offering, along with additional cash on hand, to fund the purchase of a majority interest in a professional sports franchise pursuant to a binding purchase agreement, subject to customary league approvals," the company's filing stated.
Goldman Sachs & Co. LLC and BofA Securities have been tasked as the joint book-running managers of the offering.
It was reported that the sports team in question is the Dallas Mavericks. Owner Mark Cuban is selling a majority stake in the team to Adelson at a valuation of around $3.5 billion, according to the Athletic.