MGM Resorts Adopts Regular Distribution Policy by MGM China Holdings
MGM Resorts International (NYSE: MGM) today announced the adoption of a distribution policy by its 51% owned subsidiary, MGM China Holdings Limited (SEHK 2282).
Pursuant to the announced policy, MGM China intends to pursue a dividend policy pursuant to which it will make semi-annual distributions in an aggregate amount per year not to exceed 35% of its anticipated consolidated annual profits, taking into consideration the criteria described below and its directors' fiduciary duties. MGM China may also declare special distributions from time to time in addition to the semi-annual distributions.
It is anticipated that these distributions will be declared semi-annually following the announcement of the half-year results and following the announcement of the full year results. Dividends will be declared and paid in Hong Kong dollars.
MGM China will evaluate its distribution policy and distributions made in any particular year in light of its financial position, the prevailing economic climate and expectations about the future macroeconomic environment and business performance. The determination to make distributions will be made at the discretion of the MGM China Board and will be based upon MGM China's operations and earnings, development pipeline, cash flow, financial condition, capital and other reserve requirements and surplus, general financial conditions, contractual restrictions and any other conditions or factors which the Board deems relevant and having regard to the directors' fiduciary duties. The payment of distributions may also be limited by legal restrictions and by MGM China's financing agreements (including any financing agreements that MGM China may enter into in the future).
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