It has been announced that Pansy Ho Chiu King who is the chief executive director and co-chairperson for MGM China has officially sold 4.5 million shares in the company’s United States based parent company, MGM Resorts International over 5 days.
There was a recent disclosure that said from the 11th November – November 15th the co-chairperson sold their shares and grossed an aggregate amount of around $142.3 million! Before the sale, Pansy Ho owned 3.1% worth of stock in the MGM Resorts company. Her control of the stock went down to 2.2% after the sale and each share that was sold was worth $32.43.
In 2016 Pansy Ho become a dominant shareholder in the MGM company and when the company boosted their shares in China by 52% she managed to gain 21% worth of MGM China stock.
When this was going on, MGM actually released a statement which read ““As consideration for the MGM China shares, the Company issued to Grand Paradise Macau’s (GPM) subsidiary Expert Angels Limited 7,060,492 shares of its common stock and paid consideration of $100 million.”
The purchase of MGM stock by Ho allowed the entrepreneur to lower her stake in the casino from 27% to 22% and it was reported that this was done as a strategic business move. Each share that Ho bought was for $25 and she acquired 4 million of the MGM Resorts stock.
Many people have expressed their feelings towards Ho’s decision and the majority of people who are involved in the industry are classing it as a ‘shrewd’ move due to the fact of the timing of when she decided to sell her stocks. The selling started on the 30th September 2019 and this was around the same time the MGM shares rised up to 13%. The Hong Kong exchange claimed that Ho’s $31 per share was below the stock trade however it was nearly 30% over the June price which was initially listed at $24.
In 2018, Pansy Ho managed to sell 11 million shares of the MGM stock which then decreased her shares percentage of the company from 5.1% to 3.06%.
Ho’s selling of the shares have not appeared to have had any large overall effect on the value of MGM shares. The company are now working hard to sell their shares in order to increase the total revenue as part of a planned partnership with their realm investment company, MGM Growth Properties limited.