The MGM Resorts International board has responded to an open letter distributed by Asian investment management company Snow Lake Capital yesterday.
Snow Lake, with over US$3bn in assets, manages 285.4m common shares in MGM China Holdings or 7.5 per cent of the outstanding shares, making it the largest public stakeholder in MGM China.
It stated in its open letter that it would be in MGM Resorts’ interests to introduce a leading Chinese consumer internet or travel and leisure company as a 20 per cent strategic shareholder in MGM China.
“As discussed previously with MGM Resorts International CEO William Hornbuckle, we believe such a transaction would create a win-win for all parties.”
It argued that the new strategic investor would bring “significant non-gaming resources” to both MGM China and Macau and would help diversify Macau’s integration. It would strengthen the MGM China position in securing a new gaming confession and would provide MGM Resorts International with capital to fully commit to its Osaka, Japan, resort project.
Snow Lake also argued that such a move would help the future internationalisation of the main company and would help MGM China pursue the growth market in online sports betting and gaming.
The response from the MGM Resorts board merely acknowledges receipt of the open letter and adds: “We remain committed to Macau and will continue to take actions that are in the best interests of its shareholders and stakeholders. We appreciate continued constructive engagement with MGM China shareholders.”