MGM Resorts International and its joint venture partner agreed to sell its Grand Victoria Casino in Elgin, Illinois, to Eldorado Resorts for $327.5 million in cash.
The final price for the casino, which is 50 percent owned through a unit of the group, is subject to a working capital adjustment. MGM Resorts will receive its 50 percent share of the net proceeds after certain transaction costs, or approximately $162 million.
The transaction is expected to close within 12 months, subject to regulatory approvals and other customary closing conditions.
MGM acquired Grand Victoria Casino in connection with its acquisition of Mandalay Resort Group in 2005.
The company gave no further information about its planned use for the sale funds in its announcement. MGM recently opened a new IR on Cotai in Macau and is actively planning to bid for a license in Japan.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264