Snow Lake Capital holds 8% of the outstanding shares in MGM China, while MGM Resorts holds a 56% stake in MGM China. 

In an open letter, Snow Lake Capital suggested the possible buyer could be a “leading Chinese consumer Internet or travel and leisure company.” The letter added the company believes “such a transaction will create a win-win transaction for all parties involved and deliver significant shareholder value to both companies.” 

Snow Lake Capital named six reasons for the suggested sale, including the fact that a new strategic investor would bring significant non-gaming resources to both MGM China and Macau. The reasoning also includes diversification and future internationalisation efforts. The open letter even named potential new partners, such as Meituan and Trip.com.

Macau’s six gaming licenses are set to expire in 2022, and according to the letter, “the new 20% strategic Chinese partner will significantly enhance MGM China’s outlook of securing a new concession in 2022.” Snow Lake Capital also stated a new partner would help MGM Resorts to focus on integrated resort (IR) plans in Japan. 

The open letter was signed by Snow Lake Capital founder and chief investment officer Sean Ma.