The Board of Directors of MGM Holdings Inc., authorized a share repurchase plan and adopted a Stockholder Rights Plan declaring a dividend distribution of one “Purchase Right” for each outstanding share of its Class A Common Stock and Class B Common Stock.
“Gary Barber and his team have done a great job building an attractive slate of new content in film and television, which is driving strong growth and profitability,” said Ann Mather, MGM’s Lead Director. “MGM’s healthy balance sheet and efficient operating structure position the Company for a wide array of options to maximize shareholder value. The MGM Board is considering all of these options carefully, and has approved the share repurchase plan in recognition of the Company’s strong performance to date and future prospects. Along with the share repurchase plan, the adoption of the Stockholder Rights Plan will allow the Board to act in the best interests of the Company and its stockholders without any distractions which could result from coercive and discriminatory takeover attempts.”
“As the Board considers MGM’s options for creating maximum value for our stockholders, the Board has authorized MGM to repurchase shares from stockholders,” said Gary Barber, MGM Inc.’s Chairman and Chief Executive Officer. “The initial authorization by the Board under the stock repurchase plan is $75 million, and the Board will continue to assess the size of the repurchase plan over time.”