gaming permit renewal process<\/a>, but he’s concerned the company isn’t taking his pitch on that front seriously enough.<\/p>\n<\/div>\nThe licenses for MGM Grand Macau and MGM Cotai expire in 18 months, confirming the new tendering process is \u201cquite imminent, however MGM Resorts is not taking this seriously enough,\u201d said Ma.<\/p>\n
In the letter to the MGM board, Ma mentions Huazhu Group, Meituan, Sunac China Holdings, and Trip.com as \u201csuitable candidates\u201d for acquiring 20 percent of MGM China and he claims there are more.<\/p>\n
\u201cWe have spoken to several of them, and they are very interested and willing to discuss further,\u201d <\/strong>he said in the interview. \u201cAs a long-term investor, I am firmly optimistic about the long-term development of Macau. In the long run, compared to Las Vegas, I think this market is far from saturated.\u201d<\/strong><\/p>\nBattle Brewing?<\/h2>\n
Ma doesn’t go into detail regarding what his next moves would be if MGM continues rebuffing his idea. However, he is clear that it’s not his intent to move the Las Vegas company out of the Macau unit entirely.<\/p>\n
Typically, activist investors angle for board seats to better position themselves to affect the change they desire. Ma has a long relationship with MGM China President and COO Hubert Wang and said that if Pansy Ho approaches him about joining the board, he’d be obliged.<\/strong><\/p>\nFor its part, MGM has previously deftly dealt with activist investors<\/a>, some of which remain on the company’s board. Those market participants pushed the gaming company to cash in on its premium Las Vegas real estate and move to an asset lite model, something they were successful in accomplishing because the company’s Sin City real estate portfolio is now small while its balance sheet is one of the strongest in the industry.<\/p>\n","protected":false},"excerpt":{"rendered":"Snow Lake Capital founder Sean Ma said the letter he sent earlier this week to the board of MGM Resorts International (NYSE:MGM) urging the gaming company to sell 20 percent of its equity in MGM China Holdings (OTC:MCHVF) came about after failed talks with the board. In a Thursday interview with Chinese network 36Kr, Ma […]<\/p>\n","protected":false},"author":46,"featured_media":160699,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\n
Snow Lake Founder Ma may Get Forceful with MGM on China Stake Sale<\/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