MGM China responds to Snow Lake Capital’s proposal; plans no restructuring

Imagesource:SimpleViews
Imagesource:SimpleViews

One of the largest public shareholders in MGM China, an Asian investment management firm called Snow Lake Capital had urged MGM Resorts International to sell 20% of its stake in MGM China.

Responding to the open letter issued by the Snow Lake Capital, MGM China has stated that it does not plan any restructuring as of now for its Macau operations.

Snow Capital had also insisted that it would be useful for diversification and future internationalization efforts of the business. The investment firm had suggested that the capital so saved could be used for other projects by MGMRI.

As per Gambling Insider, MGM China stated 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.”

It added: “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 interested on the possible acquisition of Entain, a deal worth $11bn, which Entain believes is undervalued.