Pansy Ho Continues Reducing MGM Resorts Investment, Stake Down to 1.78 Percent Following Latest Sales

Posted on: December 17, 2019, 09:26h. 

Last updated on: December 17, 2019, 01:42h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Pansy Ho, the eldest daughter of Macau gaming mogul Stanley Ho, continues paring her stake in MGM Resorts International (NYSE:MGM).

From Nov. 26 through Dec. 12, Ho sold nearly 2.45 million shares worth of the Las Vegas-based integrated resort operator, according to filings with the Hong Kong Stock Exchange. Those sales lowered her investment in the company to 1.78 percent.

Ho’s most recent sales of MGM equity, conducted in tranches over the aforementioned time frame, resulted in proceeds of $78.9 million. Her most recent disposal of stock in the Bellagio and MGM Grand operator seem to defy comments made following share sales revealed last month.

It is only just a restructuring of my own financial portfolio,” said Ho last month. “But this is only representing a very small proportion of the holdings that I have [in MGM Resorts]. I will continue to hold on to the remaining [shares].”

As Casino.org reported in November, the co-chairperson at MGM China Holdings Ltd. sold 4.5 million shares of MGM Resorts worth $140.2 million, cutting her stake in the company to 2.26 percent from 3.13 percent.

Good Timing

Ho’s two most recent reductions in her MGM stake have been well-timed, because the stock is soaring. Up nearly six percent this month and 11.32 percent since the start of the fourth quarter, shares of MGM reside just 0.38 percent below the 52-week high at this writing.

Her Nov. 26 through Dec. 12 sales of MGM stock were at an average price of $32.12. The stock resides just under $33 today. During the period of Ho’s most current sales, the shares advanced nearly 1.70 percent. The gaming executive denies that her sales of MGM equity are a sign that she’s looking to disassociate herself from the US gaming giant.

I am a partner and together we hold the [MGM China casino] concession in Macau,” Ho said last month.

Still, her position in MGM Resorts shares has declined considerably since last year. In early November 2018, she owned just over 5.16 percent of the company prior to a massive share sale a few weeks later that whittled the stake to 3.06 percent.

Still A Major Shareholder

Even with the reductions, Ho remains one of the largest individual shareholders in MGM. Based on 511.68 million shares outstanding as of today, her 1.78 percent stake in the company represents 9.10 million shares.

Only nine index, mutual and hedge funds hold more MGM stock than Ho.

She has an estimated net worth of $4.3 billion, not including proceeds from the aforementioned MGM equity reductions.

Filings with the Hong Kong Stock Exchange did not indicate if Ho has plans to further reduce her MGM exposure, nor has she commented publicly to that effect.