Fertitta increases Wynn stake after pledging to relinquish interests for ambassador role
According to the SEC filings, Fertitta made three purchases from 21-24 March to bring his stake to 12.6 million shares. Through his various companies, he now controls 11.8% of the casino powerhouse.
By filing a Schedule 13G, Fertitta has indicated that the investment is considered passive. This means the entertainment and restaurant mogul does not intend to interfere with Wynn’s day-to-day operations, at least for now. The two sides have been linked since late 2022, when Fertitta acquired a 6% stake.
Last November, it was discovered that Fertitta had increased his Wynn stake to 9.9%, making him the company’s biggest individual shareholder. This resulted in much speculation that he could be planning a takeover bid, especially given his familiarity with the gaming business. Fertitta owns eight Golden Nugget-branded casinos in six states, including three in Nevada. Additionally, his cousins Lorenzo and Frank Fertitta control Red Rock Resorts, parent company of Station Casinos.
A Bloomberg report from that time asserted via anonymous sources that Fertitta was unhappy with Wynn Resorts’ recent performance. But neither he nor Wynn has addressed those rumours publicly.
In any case, investors reacted positively to both of Fertitta’s share increases. In November, Wynn’s stock jumped 9% on the news, while Tuesday saw a more modest 1.3% bump.
Wynn declined to comment on the stake increase on Wednesday and pointed to Fertitta’s 13G status.
Ciao for now?
Fertitta’s increase comes days after he pledged to step down as CEO of conglomerate Fertitta Entertainment if he is confirmed as the next US ambassador to Italy and San Marino. In addition to Golden Nugget, Fertitta’s business holdings also include the Landry’s restaurant chain and the NBA’s Houston Rockets franchise. The American president, Donald Trump, announced his nomination as ambassador in December.
In a 16 March letter to the US office of government ethics, Fertitta said he would resign as his company’s CEO and also forfeit his potential severance from the company. Much like his stake in Wynn, he indicated he would only remain in a passive capacity during his ambassadorship.
“Additionally, I will continue to retain a passive interest in these entities, but I will not provide services material to the production of income. Instead, I will receive only passive investment income. With regard to each of these entities, I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predicable effect on the financial interests of the entity or its underlying holdings,” he wrote.
Notably, he said he would keep his duties with the Rockets. This is because, he wrote, “my recusal from particular matters in which these interests may pose a conflict of interest will not substantially limit my ability to perform the essential duties of ambassador.”