MGM Resorts boosts China casino stake in $325M deal with Pansy Ho

U.S. casino operator MGM Resorts International is increasing its ownership stake in its China unit to 56 percent, a move that has left analysts baffled given the fragile sense of stability in Macau today.

On Tuesday, the Las Vegas-based casino company announced that it has agreed to acquire 188.1 million shares in its Chinese subsidiary, MGM China Holding Ltd., from CEO Pansy Ho for a sum of $325 million in stock, cash, and deferred cash.

Ho—a member of Macau’s founding gambling family—holds a 27.44 percent stake in MGM China, which will drop to 22.49 percent once the transaction is completed. But in exchange, the executive will receive 4 million MGM Resorts shares, increasing her ownership stake to 4.8 percent.

“As a result of the transaction, the company will acquire an additional 4.95 percent of the outstanding ordinary common shares of MGM China and will own approximately 56 percent of MGM China’s outstanding common shares,” MGM Resorts said in a statement.