The director of Beverly Hills-based MGM Holdings Inc., the parent company of Metro-Goldwyn-Mayer, announced Sept. 13 that the company's healthy balance sheet from building an "attractive slate" of television and film content allowed its board of directors to authorize a $75-million stock repurchase program, according to a press release.
The privately-held company designed the plan to protect MGM from a hostile takeover following its emergence from bankruptcy in 2010, but representatives say the stock repurchase plan was not being adopted as a "known response" to acquire the company, according to the Los Angeles Times.
“MGM’s healthy balance sheet and efficient operating structure position
the Company for a wide array of options to maximize shareholder value," said Ann Mather, MGM’s lead director, in a statement. "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."
The repurchase plan does not affect the number of shares or the value of
shares a MGM stockholder currently owns, and it has no impact unless triggered
by a hostile action, according to the release.
For more information on MGM, the stock repurchase plan and the dividend distribution plan, click here.