Twitter
In Macau and a prominent investor in local casino operator MGM China Holdings Limited has reportedly urged the enterprise’s majority shareholder, MGM Resorts International, to sell up to 20% of its own stake to one of a number of Chinese enterprises.
According to a report from Inside Asian Gaming, Hong Kong-headquartered alternative investments firm Snow Lake Capital currently holds a 7.5% stake in MGM China Holdings Limited following a pair of late-2020 acquisitions that cost it in the region of $16.5 million. The source detailed that this backer’s founder, Sean Ma, has now penned an open letter to call on MGM Resorts International to dispose of a portion of its controlling interest in the firm behind Macau’s MGM Cotai and MGM Macau venues so as to ‘create a win-win transaction for all parties involved and deliver significant shareholder value to both companies’.
Expansion aspirations:
Las Vegas-based MGM Resorts International reportedly holds 55.95% of the shares in MGM China Holdings Limited and recently divulged that the subsidiary had recorded a third-quarter deficit in the region of $94.2 million as its associated net revenues tumbled by 93.7% year-on-year to just over $46.8 million. The American behemoth is purportedly also hoping to enter the Japanese casino market while being involved in talks that could see it acquire prominent iGaming and sportsbook operator Entain via deal thought to be valued at around $12.9 billion.
Further factors:
However, the letter from Ma reportedly contends that 
MGM Resorts International should now moreover consider freeing up capital by selling some its stake in MGM China Holdings Limited to a new strategic investor. The filing purportedly contends that such an endeavor would furthermore allow the giant casino firm to bring in ‘significant non-gaming resources’ for both its subsidiary and Macau to help with its bid to continue operating in the former Portuguese enclave beyond the termination of its current license in June of 2022.
Suggested suitors:
Regarding a proposed buyer for a portion of MGM Resorts International’s stake in MGM China Holdings Limited and the letter reportedly mentions four Chinese companies encompassing property developer Sunac China Holdings Limited, hotel operator Huazhu Group, online travel firm Trip.com and local Internet platform doyen Meituan.
Reportedly read Ma’s letter…
“Introducing one of China’s top consumer Internet platforms as a significant strategic shareholder for MGM China Holdings Limited creates a win-win transaction as it distinguishes MGM China Holdings Limited by bringing non-gaming capabilities and resources to Macau at the industry’s post-coronavirus low. On the other hand, these companies will also benefit from the strategic investment in MGM China Holdings Limited.”
Significant solution:
The boss for Snow Lake Capital reportedly suggested 
that such an arrangement could moreover allow local casino magnate Pansy Ho Chiu-King (pictured), who conveniently serves as Managing Director for MGM China Holdings Limited, to play a ‘significant role’ in helping Macau and the wider region to further diversify its entertainments offering. Ma purportedly furthermore advised that this would, in turn, help MGM Resorts International to increase the market value of its Asian subordinate, which he believes currently stands at up to 30% below that of its rivals.
Ma’s letter reportedly read…
“With a successful deal, MGM Resorts International could position itself well in a secular growth market. For the aforementioned reasons, we strongly urge the board and management team at MGM Resorts International to seriously pursue a strategic transaction with a leading Chinese consumer Internet or travel and leisure company to best position the MGM Resorts Limited shareholders for future success in Macau.”
Play games casino online games refers to participating in casino-style games through an online platform. In essence, it combines the excitement of traditional casino games, like slots, blackjack, poker, and roulette, with the convenience of playing them online.
When you play games casino online, you can enjoy:
-
Variety of Games: Many online casinos offer a huge range of games, from popular slots to live dealer games, replicating the casino experience at home or on mobile.
-
Accessibility: Online casinos allow you to play anytime and anywhere, making it easy to enjoy your favorite games without traveling to a physical location.
-
Bonuses and Promotions: Online casinos often offer promotions, welcome bonuses, and rewards, enhancing your experience and providing extra funds to play with.
-
Real Money or Free Play: Most platforms offer options to play for real money or for fun, giving players the flexibility to test games before committing financially.
Online casino games bring the thrills and potential rewards of a real casino experience to your screen, with the added security, convenience, and bonuses that online platforms provide.
