FILE PHOTO – Gaming machines are seen at the casino of MGM Cotai in Macau, China February 13, 2018. REUTERS/Bobby Yip
January 24, 2019
(Reuters) – U.S. casino operator MGM Resorts International <MGM.N> said on Thursday it had formed a committee to evaluate its real estate portfolio.
The announcement comes a week after MGM struck a deal with hedge fund Corvex Management’s founder, Keith Meister, to give him a board seat. Corvex owns roughly 3 percent of MGM’s shares.(https://reut.rs/2U7WhAS)
MGM said the committee will comprise three independent directors – Meister, Kilroy Realty Corp Chief Executive Officer John Kilroy Jr and Paul Salem, Providence Equity senior managing director emeritus.
“The committee’s focus and objectives will remain consistent with the company’s existing strategy to enhance free cash flow per share, maximize value of the owned real estate and MGM’s equity holdings,” the company said.
Early this month, MGM announced plans to cut costs and boost growth, while proposing to increase annualized adjusted earnings before interest, taxes, depreciation and amortization by $300 million by the end of 2021.
Shares of MGM were up 1.7 percent at $28.28 in early trading.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)
