MGM Resorts plans to buy back $1.25bn of shares after recent decline
MGM Resorts International has announced it is planning a $1.25bn buyback of shares, after a recent hit in stock prices due to the coronavirus outbreak.
Last month, MGM intended to purchase up to $1.25bn of stock between $29 and $34 per share. However, the new tender offer is lower, now between $23.50 and $28, with share prices falling 28% in the last month, to $23.30. The offer will expire on 16 March, unless extended.
The fall in share prices coincides with the coronavirus crisis, which caused Macau casinos to be closed for two weeks until 20 February, leading to a $1.5m daily loss for MGM.
It’s been a chaotic time for MGM in the past month. In February, it was announced the personal information of 10.6 millions guests who stayed at MGM hotels was hacked last summer.
Meanwhile, Chairman and CEO Jim Murren announced he was stepping down last month and Q4 financial results were below expectations, with net revenue growing 4% year-on-year to $3.2bn; but profits came in at just eight cents per share, 43% lower than 2018.
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