MGM resorts urged to sell 20pc of its China business.

Byline: S. Kamal Hayder Kazmi

Snow Lake Capital, an Asian investment management firm and one ofa-MGM China's largest public shareholders, has urged MGM Resorts International to sell 20percent of its stake in MGM China.

Snow Lake Capital holds 8percent of the outstanding shares in MGM China, while MGM Resorts holds a 56percent stake in MGM China.

In an open letter, Snow Lake Capital suggested the possible buyer could be a "leading Chinese consumer Internet or travel and leisure company." The letter added the company believes "such a transaction will create a win-win transaction for all parties involved and deliver significant shareholder valuea-to both companies."

Snow Lake Capital named six reasons for the suggested sale, including the fact that a new strategic investor would bring significant...