MGM China Could Drive Value If MGM Resorts Attracts Outside Suitor

An amended voting agreement between MGM Resorts International (NYSE: MGM) and Barry Diller’s People Inc. (NASDAQ: PPLI) could simplify a future sale of the casino operator while making MGM China a point of emphasis in a change-of-control scenario. CreditSights recently noted that MGM China faces potential “event risk” if control of its Las Vegas-based parent changes hands. While the research firm called takeover overhang risk “less acute,” it said the revised voting agreement with Diller implies MGM Resorts could be open to a future sale. The U.S.-based parent owns 56% of the operator of MGM Cotai and MGM Macau.