MGM China’s Chairperson and Executive Director, Pansy Ho, has moved to dispel rumors of any intention to sell her 22.5% stake in the company. Recent reports suggested speculation after she deposited 380 million shares, equivalent to her holding, into the Hong Kong Exchange’s Central Clearing and Settlement System (CCASS). MGM China clarified that the share deposit was part of an arrangement between Ms. Ho and her custodian banks, refuting any indication of divestment plans.
Background:
The deposit of 380 million shares raised eyebrows in the market, as placing shares in CCASS is commonly associated with facilitating quicker buying or selling through securities dealers or banks. Despite this, MGM China emphasized that the move was not linked to any intention to reduce Ms. Ho’s shareholding.
Details of Share Deposit:
Records indicate that 150 million shares were deposited via Standard Chartered Hong Kong on October 11, followed by another 230 million shares deposited via BNP Paribas on November 15. At Tuesday’s closing price, the 380 million shares are valued at about HK$3.63 billion (US$466 million).
Company’s Financial Performance:
Earlier this month, MGM China reported net revenues of US$813 million for the three months ending September 30, 2023, marking a 10% increase from pre-COVID levels. The growth was attributed to the addition of 198 gaming tables under its new 10-year gaming concession. However, despite these positive results, the company’s share price remains below its five-year high of HK$16.42 achieved in March 2019.
Pansy Ho’s Statement:
MGM China issued a statement to Hong Kong’s Economic Times, denying any plans for divestment by Pansy Ho. The company clarified that the share deposit was a routine arrangement with her custodian banks, emphasizing the continued commitment of Ms. Ho to her stake in MGM China.
Market Reaction and Speculation:
The share deposit had triggered market speculation, as such actions are often interpreted as precursors to selling. MGM China’s proactive clarification seeks to allay concerns and provide transparency about the nature of the share deposit, reinforcing confidence in the stability of the company.
In the dynamic landscape of gaming industry investments, Pansy Ho’s clarification regarding the share deposit underscores the importance of clear communication and transparency. As MGM China navigates the complexities of the market, the company aims to ensure that its stakeholders understand the strategic decisions made by its leadership, reinforcing trust and stability in the business.