Pansy Ho to Maintain Majority Stake in MGM China

On November 25, 2023, Pansy Ho, the co-chairperson of MGM China, has made a move that suggests she may not materially alter her stake in the gaming company. Despite depositing her entire equity interest of 380 million shares into the Hong Kong Exchange’s Central Clearing and Settlement System (CCASS), it is unlikely that she will sell her entire stake in the casino operator.

Ho, who is the eldest daughter of Macau casino patriarch Stanley Ho, made two transactions to move her MGM China shares into the CCASS through BNP Paribas and Standard Chartered. However, MGM China stated that they were not directly involved in these transactions and clarified that they were part of previously made arrangements between Ho and her banks.

At 61 years old, Ho cleared $1.5 billion from MGM China’s 2011 initial public offering and is the largest individual shareholder of the gaming company’s equity. Despite this, she does not have an established track record of massive sales of the stock. While she has mostly held onto her MGM China shares, she started trimming her stake in MGM Resorts International in 2019.

Furthermore, it may not be a good time for Ho to sell her stake in MGM China as Macau casino stocks have recently slumped. This indicates that any investor cutting or eliminating such positions today may be “selling low.” Additionally, Macau casino stocks are historically inexpensive, indicating valuation risk has been eliminated from the equation.

MGM China is in the midst of questioning Ho’s recent moves, and it is clear that the market conditions are not in favor of significant sales of the stock. Despite the recent transaction to deposit her shares into CCASS, Ho’s decision to sell her stake in MGM China remains uncertain and may not be the most advantageous move in the current market climate.