LAS VEGAS, Aug. 16, 2016 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) (the "Company") today announced that it
has entered into a definitive agreement to acquire 188,100,000
ordinary shares of its subsidiary MGM China Holdings Limited ("MGM
China") (SEHK: 2282), from Grand Paradise Macau ("GPM"), a an
entity controlled by Ms. Pansy Ho.
As a result of the transaction, the Company will acquire an
additional 4.95% of the outstanding ordinary common shares of MGM
China and will own approximately 56% of MGM China's outstanding
common shares.
"MGM Resorts is committed to the long term growth of
Macau as a premier international
tourism destination and we are pleased that we can build upon our
longstanding relationship with Pansy to further work toward our
mutual interests," said Jim Murren,
Chairman and Chief Executive Officer of MGM Resorts. "Together, we
believe in the future of the Macau
marketplace and are confident in the success of MGM China as we
expand into Cotai next year."
"The transaction represents another important step in expanding
this multifaceted relationship with the MGM Resorts, while
remaining a significant shareholder in MGM China," said
Pansy Ho. "I am excited to deepen my
relationship with the MGM family."
As consideration for the MGM China shares, the Company will
issue to GPM (or its nominee) 7,060,492 shares of its common stock
and pay cash consideration of $100
million. In addition, the Company has agreed to pay
GPM (or its nominee) a deferred cash payment of $50 million, which will be paid to GPM (or its
nominee) over time in amounts equal to the ordinary dividends
received on such shares, with a final payment on the fifth
anniversary of the closing date of the transaction if any portion
of the $50 million remains unpaid at
that time, subject to certain conditions. The shares of the
Company that are issued to GPM (or its nominee) are expected to be
registered with the Securities and Exchange Commission and listed
on the New York Stock Exchange.
In addition, the Company has been informed that Ms. Ho has
entered into an agreement to acquire 4 million shares of MGM
Resorts stock at $25.00 per share
from Tracinda Corporation. Upon completion of these transactions,
Ms. Ho would own approximately 4.8% of the outstanding common stock
of MGM Resorts.
"We continue to execute on value accretive transactions with the
long term benefits in mind as MGM Resorts is increasing its stake
in MGM China in a financially prudent manner," added Mr.
Murren.
The transaction is subject to customary closing conditions and
is expected to be completed during the third quarter of 2016.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating a portfolio of
destination resort brands including Bellagio, MGM Grand, Mandalay
Bay and The Mirage. The Company is in the process of developing MGM
National Harbor in Maryland and MGM Springfield
in Massachusetts. MGM Resorts controls and holds a 76 percent
economic interest in the operating partnership of MGM Growth
Properties LLC (NYSE: MGP), a premier triple-net lease real estate
investment trust engaged in the acquisition, ownership and leasing
of large-scale destination entertainment and leisure resorts. The
Company also owns 51 percent of MGM China Holdings Limited (HK:
2282), which owns the MGM Macau resort and casino and is developing
a gaming resort in Cotai, and 50 percent of CityCenter in Las
Vegas, which features ARIA Resort & Casino. MGM Resorts is
named among FORTUNE® Magazine's 2016 list of World's Most Admired
Companies®. For more information about MGM Resorts International,
visit the Company's website at www.mgmresorts.com.
Statements in this release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Company has based
these statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include statements regarding the completion of the
private placement on the terms described in this release, or at
all. A number of important factors could cause actual results to
differ materially from those indicated in such forward-looking
statements, including effects of economic conditions and market
conditions in the markets in which the Company operates,
competition with other destination travel locations throughout
the United States and the world,
the design, timing and costs of expansion projects, and risks
relating to international operations, permits, licenses,
financings, approvals and other contingencies in connection with
growth in new or existing jurisdictions and additional risks and
uncertainties described in the Company's Form 10-K, Form 10-Q and
Form 8-K reports (including all amendments to those reports) filed
with the Securities and Exchange Commission. In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law.
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SOURCE MGM Resorts International