MGM Resorts International (NYSE:MGM) is one of the 10 Stocks Entering June on Fire.
MGM Resorts extended its winning streak to an 8th straight session on Monday, to notch a new two-year high, as investors resumed buying positions following confirmation that it would review a sale offer.
In intra-day trading, the stock climbed to a record high of $51.56 before paring gains to end the day just up by 16.08 percent at $50.69 apiece.
Photo by Linha Halin on Pexels
In a statement on the same day, MGM Resorts International said that it received an offer from People Inc. for the latter’s full acquisition of its shares at a price of $48.30 apiece. The offer price marked a 4.7-percent discount from its latest closing price of $50.69, but was 10.6 percent higher than its closing price on Friday, or prior to the confirmation.
“The company’s Board of Directors, in consultation with its financial and legal advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the company and all of its shareholders. MGM Resorts shareholders do not need to take any action at this time,” it noted.
Following the news, the stock climbed to a record high of $51.56 before trimming gains to end the session just up by 16.08 percent at $50.69 apiece.
People Inc. announced on the same day that it offered to acquire just over 50.1 percent stake in the company in a bid to diversify beyond its media and food and wine businesses. The offer is expected to boost MGM Resorts International’s valuation to $18 billion.
The sale offer followed the results of MGM Resorts International’s earnings performance in the first quarter of the year, with attributable net income slashed by 15.5 percent to $125 million from $148 million in the same period last year. Revenues increased by 3.97 percent to $4.45 billion from $4.28 billion year-on-year.
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