The board of directors announced that it had recommended spending just over $40.69 million to pay investors a final dividend on 2019 financial performance.
The Hong Kong-listed company said the award, which will account for about 16.3% of its most recent full-year profit, still needs to be approved by shareholders and is in accordance with an August decision that it saw as agreeing to an interim dividend reportedly worth about $46.08 million.
MGM China Holdings Limited is responsible for the 582-room MGM Macau venue and opened the $3.4 billion MGM Kotai property in mid-February 2018. However, the operator recently saw the price of individual shares fall to around $1.13 – the lowest level in more than four years – due to the global economic slowdown caused by the coronavirus pandemic.
MGM China Holdings Limited’s most recent disclosure means the company plans to distribute approximately 34.8% of last year’s returns as interim and final dividends. This reportedly came after the company ratified a measure in 2013 that prohibited the board from donating more than 35% of its projected annual profit to investors.
“The Board recommended the final dividend payment after reviewing the Group’s financial position as of March 26, 2020, future capital and liquidity requirements, and other factors considered by the Board.”
MGM China Holdings Limited reportedly added that its board of directors made the latest decision after deciding that the company’s coffers would include “sufficient financial resources after final dividend payments to finance operations and business expansion,” along with approximately $22.76 million of the final amount heading to MGM Resorts International, which holds a 55.95% stake.
MGM China used a separate document stating that Bill Hornbuckle (pictured) was named its new chairman following the resignation of industry mogul Jim Murren. On Sunday, the 62-year-old was chosen to replace his younger predecessor as chief executive of MGM Resorts International after 22 years at the Las Vegas headquarters’ operator, including a one-year term as chief operating officer.