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MGM Resorts open to buying even more shares in MGM China


MGM Resorts International may be willing to buy even more shares of MGM China Holdings, said chairman and chief executive James Murren.

However, any such purchases would be “incremental” to the 4.95 percent that MGM Resorts announced earlier in the week it would add.

On Tuesday, MGM Resorts announced it had entered into a transaction to acquire 188.1 million shares of MGM China from businesswoman Pansy Ho.

The transaction will see MGM Resorts own 56 percent of MGM China (up from 51 percent), with Ms Ho’s stake in MGM China down to 22.5 percent (from 27.4 percent).

The deal is expected to be completed during the third quarter of 2016.

“I believe in the long-term future of Macau and I think owning more of MGM China over time is going to be a very accretive transaction for the MGM Resorts shareholders,” said Murren in an interview with Bloomberg Television.

“But I think I have to do it incrementally: going back to doing deals. You need to have a buyer and a seller,” he added

However Murren said the deal sent an important signal that MGM Resorts remained committed to the Macau market.

In a separate filing on Tuesday, MGM announced it has priced a public offering of $500 million in aggregate principal amount of 4.625 percent senior notes due 2026 at par.

The transaction is expected to close on Friday, August 19, 2016.

 

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