MGM China shares fall after Pansy Ho sells entire MGM Resorts stake

Shares of MGM China Holdings fell about 6.4% on Monday after disclosure that Chair and Executive Director Pansy Ho sold her entire stake in parent company MGM Resorts International.

According to Hong Kong Stock Exchange filings, Ho disposed of her remaining 1.2% stake in MGM Resorts through a series of trades conducted between May 28 and June 3, Macau Business reported. The transactions involved 3,066,157 shares priced between $42.40 and $50.24, generating approximately $140 million.

Ho’s divestment marks the conclusion of a multi-year reduction in her MGM holding. Her stake had previously peaked at about 4.8% before she began steadily trimming exposure in late 2019.

Her initial position in MGM was built through a 2016 restructuring transaction in which MGM Resorts expanded its stake in its Macau-based joint venture, along with participation tied to a deal involving Kirk Kerkorian’s Tracinda Corp. That series of transactions brought Ho’s ownership to nearly 5%.

The timing of Ho’s final sales coincided with heightened market activity following a reported $18 billion acquisition proposal for MGM by People Inc.

Market attention has since turned to the potential strategic implications of her exit. Earlier this month, analysts noted that a possible privatization of MGM Resorts could prompt a reassessment of its international assets, particularly its Macau operations.

The speculation intensified after media group People Inc submitted its non-binding all-cash proposal to acquire shares it does not already own, valuing the offer at US$48.3 per share. The company already holds 26.1% of MGM Resorts and could secure a controlling 50.1% stake if the bid succeeds.

Analysts say the offer may need to be raised to gain acceptance, and that any new controlling shareholder is likely to review MGM Resorts’ 56% stake in MGM China, along with its 42.5% interest in the MGM Osaka development project in Japan.

MGM China Holdings operates two major properties in the region, namely MGM Macau and MGM Cotai. The company remains one of six licensed casino operators in Macau, a key global gaming hub.

Ho, the eldest daughter of late Macau gaming magnate Stanley Ho, remains a major stakeholder in MGM China, where she controls a significant ownership position even after exiting MGM Resorts International.