Good bet

7 Jan 2021 By Katrina Hamlin Follow @KatrinaHamlin

Investor Snow Lake wants the casino operator to sell 20% of its $6 bln Macau business to a local buyer. There are merits to the idea, including the edge it could provide for a new licence in the world’s biggest gambling hub. It would also, however, complicate other deals.

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Asian investment firm Snow Lake Capital on Jan. 6 urged MGM Resorts International to sell 20% of its China business to a strategic partner.

Snow Lake, which owns roughly 7.5% of MGM China Holdings, wrote in a letter to the MGM Resorts board that such a move would give the casino operator financial flexibility; provide it with enough capital for its resort project in Osaka, Japan; bring non-gaming resources to both MGM China and Macau; and help it pursue acquisitions related to online sports betting and gaming.

Ladbrokes owner Entain said on Jan. 4 that an $11 billion takeover approach from MGM Resorts significantly undervalued its business.

MGM China shares gained 5% to HK$12.90 by 10 a.m. (GMT 0200) on the morning of Jan. 7.

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