MGM Resorts has hit back at Land and Buildings, a 0.38 percent shareholder of MGM, after the latter nominated a group of four individuals to replace four current members of the Board, MGM announced.
“Replacing experienced, licensed directors, who have overseen the Company's progress to date, is not warranted and it is not in shareholders' best interests. In fact, doing so could be damaging to the Board's unified strength and complementary skills-based construct, as discussed in more detail below,” MGM Resorts said.
MGM added that Land and Buildings, an investment management company, has also proposed that MGM convert into a bifurcated structure comprised of a REIT and a C-Corp, in addition to undertaking a number of other strategic actions.
“The analysis done by Land & Buildings makes numerous financial, structural and tax assumptions that are unclear, unsupported or factually incorrect, leading to a questionable value proposition as presented. Our board has a long track record of unlocking value for its shareholders and is actively managing our global portfolio while also overseeing a significant value enhancing development pipeline.”
Earlier this month Land and Buildings said “MGM total shareholder returns have materially underperformed proxy peers over the trailing 1-, 3-, 5-, and 10-year periods, which Land and Buildings attributes to a host of factors, including deficiencies in capital allocation and balance sheet management.”
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