MGM affirms ‘no plans of restructuring’ following Snow Lake’s open letter

MGM China Holdings Ltd published a statement to the Hong Kong Stock Exchange on January 8 reaffirming that it “has no plans of restructuring.”
This statement was in response to an open letter issued earlier by its largest public shareholder Snow Lake Capital which urged MGM Resorts International to sell off 20% of its MGM China stakes to a leading Chinese consumer or travel and leisure company.
MGM China stated in the statement that the group’s board of directors is “aware” of the open letter.
“The Board will continue to communicate with the company’s shareholders and operate the company in the best interests of its shareholders and stakeholders, enhancing shareholder value and performance of the Company,” the statement stated.
The open letter, issued on January 6 by the Asian investment management firm which holds 7.5% of MGM China Holdings Ltd’s 2282.HK shares, had sparked debates about how MGM Resorts International and MGM China would react to the recommendations of selling MGM China’s stakes.
Snow Lake regarded the proposed transaction as a “win-win transaction” that will help MGM China diversify from gaming and secure a new gaming concession in 2022.
Currently, MGM Resorts has a 56% stake in MGM China. HT