MGM China Holdings has issued a statement declaring that the company has no plans to restructure its Macau operations.
The statement is a direct response to an open letter published by Snow Lake Capital, urging MGM Resorts International, the company’s controlling shareholder, to sell 20% of its Macau casino to a more tourism-oriented firm to facilitate diversification and have additional capital to use on other projects.
MGM Resorts maintained it will continue making decisions to the best interest of shareholders, and MGM China added in its own statement that “the board of directors of the company is aware of an open letter issued by Snow Lake Capital, an institutional investor and a shareholder of the company, to the board of directors of MGM Resorts International, the company’s controlling shareholder, on 6 January 2021, making recommendations on the shareholding structure and future development of the company.”
“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.”
Currently, MGM Resorts seems to be focusing on the possible acquisition of Entain, a deal worth $11bn. Should the offer be approved, analysts predict MGM Resorts might focus on other gambling industries, with brokerage Sanford C. Bernstein Ltd saying, “while we do not see a transaction with Entain impacting MGM Resorts’ commitment to MGM China in the near term, if MGM [Resorts] chooses to focus on the digital opportunity (which we do not see forthcoming in Macau/China in the foreseeable future), MGM China may eventually be divested.”