\n
Without a burning need for the cash a stake sale would bring in, and with Macau stocks still feeling the effects of the coronavirus pandemic, MGM probably wouldn’t entertain Snow Lake’s idea \u201canywhere close\u201d to where MGM China shares currently reside, according to JPMorgan analyst Joseph Greff.<\/p>\n<\/div>\n
Shares of the MGM Cotai operator would need to nearly double to reclaim the 2018 highs, and while that’s not necessarily a requirement to consider trimming its position in the Macau unit, it could be hasty of MGM to scale back its China exposure today.<\/strong><\/p>\nOther Ideas<\/h2>\n
Greff, the JPMorgan analyst, says that for MGM to pull back from Macau\u00a0\u201cat these levels is premature, in our view, to drive incremental equity value.\u201d<\/strong><\/p>\nOf course, that doesn’t jibe with Snow Lake’s wishes. The investment firm believes the introduction of a Chinese internet company into the MGM China fray would benefit shareholders.<\/p>\n
Should MGM need more capital, it can get that without sacrificing Macau upside by further reducing its interest in MGM Growth Properties (NYSE: MGP), its primary landlord in the US. Last year, the casino operator sold $1.4 billion worth<\/a> of the MGP units it held. But it still owns 53 percent of the real estate company.<\/p>\n","protected":false},"excerpt":{"rendered":"MGM Resorts International (NYSE:MGM) has confirmed it received a letter from Snow Lake Capital Ltd. founder Sean Ma. But the gaming company isn’t rushing to trim its stake in MGM China Holdings (OTC:MCHVF), per the investor’s suggestion. In a letter to the Aria operator’s board, Ma, whose firm controls 7.5 percent of MGM China shares […]<\/p>\n","protected":false},"author":46,"featured_media":160533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\n
MGM Confirms Investor Letter, But Won't Rush to Sell MGM China Shares<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n