MGM authorises $2b share repurchase program

The company revealed that the Board of Directors has authorised a new share repurchase program worth US$2 billion.

US.- MGM Resorts International announced that it will repurchase around US$2 billion of its own stock. The share repurchase program was authorized by the board of Directors late last week. Jim Murren, Chairman and CEO of MGM Resorts, said that the move reflects the company’s financial strength and continued commitment to returning capital to the company’s shareholders.

“We are pleased with the Company’s strong balance sheet, which has allowed us to take a balanced approach to driving shareholder value through our quarterly dividend and share repurchase program, as well as continuing to invest in our properties and explore prudent growth opportunities.”

MGM also announced the completion of the US$1 billion share repurchase program announced in September 2017. Ever since that announcement, the company has repurchased almost 30 million shares.

Earlier this week, the company also revealed its plans for the economic structure of the company’s business in the Asian country. Murren said that if the company joins a consortium to operate in the country, they are “not having a marginal stake” there. 

“In terms of our minimum level of consortium investment [for Japan], we are not going to be interested in being a consortium partner with 20 or 30 percent of something. I’m not sure if we’ll have a majority [stake] or not – I don’t think anyone really knows that for sure – but we are going to have a very significant equity investment [in Japan] and we are going to be in a consortium that values MGM’s development and management and compliance expertise in the gaming sector.”