MGM cancels share buyback

Operator cancels planned buy back after its share price continued to fall amid the Coronavirus crisis.

US.- MGM Resorts has taken the decision to cancel its planned share buy-back after the price of its stock tumbled due to the on-going Coronavirus crisis.

MGM had set aside US$1.25 billion for the buy-back and initially sought to reduce the value of the shares but as the markets continued to fall, took the decision to cancel the process.

“As a result of the unforeseen and unprecedented volatility in the financial markets due to Coronavirus, and the resulting impact on our ability to determine and maintain an offering price range, we have decided to terminate the tender offer,” Jim Murren, MGM Resorts CEO, said.

Back in February, MGM’s stock price was around US$31.80 and the company planned to spend between US$29-US$34 on the buy-back.

But amid the Coronavirus crisis and investor uncertainty, MGM’s share price dropped to US$23.30 and saw the company lower the value of the buy-back.

The price continued to fall to US$18.08 when MGM took the decision to cancel the buy-back.