LAS VEGAS, Sept. 1, 2016 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) (the "Company") today announced that it
has closed on its previously announced acquisition of 188,100,000
ordinary shares of its subsidiary MGM China Holdings Limited ("MGM
China") (SEHK: 2282), from Grand Paradise Macau ("GPM"), an entity
controlled by Ms. Pansy Ho. As a
result of the transaction, the Company owns approximately 56% of
MGM China's outstanding common shares and Ms. Ho owns approximately
22.5%.
"Our increased stake in MGM China and enhanced relationship with
Pansy both reinforce our belief in the long term prospects of
Macau and the future success of
MGM China, in which Pansy remains a significant shareholder and
collaborative partner," said Jim
Murren, Chairman and Chief Executive Officer of the Company.
"We remain focused on our strategic goals and believe we have taken
another step to further position our Company to generate
sustainable value to our shareholders."
As consideration for the MGM China shares, the Company issued to
GPM's subsidiary Expert Angels Limited ("EA") 7,060,492 shares of
its common stock and paid consideration of $100 million. In addition, the Company 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
issued to EA are expected to be registered with the Securities and
Exchange Commission and have been listed on the New York Stock
Exchange.
In addition, the Company has been informed that through EA, Ms.
Ho acquired four million shares of the Company's stock from
Tracinda Corporation. With the completion of these transactions,
Ms. Ho owns approximately 4.8% of the outstanding common stock of
the Company.
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 56 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 Company's ability to
generate sustainable value to the Company's shareholders. 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