GGRAsia – Fund manager Capital Group cuts long position in Galaxy Ent

Fund manager Capital Group cuts long position in Galaxy Ent

Aug 20, 2024 Newsdesk Latest News, Macau, Top of the deck

Capital Group Companies Inc, one of the world’s largest investment managers in terms of funds under management, has reduced by 3.17 percentage points its long position in the public shares of Macau casino operator Galaxy Entertainment Group Ltd.

According to disclosures to the Hong Kong Stock Exchange, where Galaxy Entertainment is listed, three transactions – on August 13, 15 and 16 – saw Capital Group’s long holding in the casino group’s shares reduce from 8.01 percent to 4.84 percent.

The first deal saw 4,674,760 shares disposed of. The exercise had an on-market component, with an average price of just under HKD29.30 (US$5.60) per share, and an off-market component, with an average consideration of just under HKD19.00 per share in cash.

The August 15 transaction involved 38,194,265 Galaxy Entertainment shares. The on-market component had an average price of just over HKD29.32 per share, and the off-market part an average consideration of just over HKD18.93 in cash.

The third deal saw 89,359,493 shares disposed of. The exercise had an on-market component, with an average price of just under HKD30.44 per share, and an off-market component, with an average consideration of just under HKD19.98 per share in cash.

The proportion of the on-market to the off-market component of the transactions was not mentioned in any disclosure.

Galaxy Entertainment’s stock has been a constituent of Hong Kong’s benchmark Hang Seng Index since June 2013, according to the casino group’s corporate website.

On August 15, Galaxy Entertainment, which runs the Galaxy Macau gaming resort (pictured) in Cotai, and StarWorld Hotel and its casino in downtown Macau – had reported an interim profit of nearly HKD4.39 billion, up 51.8 percent from the prior-year period.

Galaxy’s shares had closed on August 15 at HKD29.55, up 1.03 percent on the day. By the close on August 16, they had gone up 5.58 percent on the day, show exchange data.

According to its corporate website, Capital Group, as of December 31, had US$2.5 trillion under management on behalf of investors and institutions worldwide.