MGM Resorts has sold its stake in MGM Growth Properties in a transaction that will boost its available cash pile for future expansion to $11.6bn, taking into account other recent asset sales.
The company is selling its operating partnership units in MGP for $43 for total cash proceeds of $4.4bn to VICI Properties, which will also buy 100 per cent of the outstanding class A shares in an all-stock transaction. The deal values MGP at $17.2bn.
“In 2016 we started on our journey to become asset light and this announcement, together with our recently announced Springfield and CityCenter transactions, reflects the culmination of those efforts and a major step forward in simplifying our corporate structure,” said Bill Hornbuckle, CEO and president of MGM Resorts.
“As a result of these actions, we are well positioned and remain focused on pursuing growth opportunities in our core business, with significant financial flexibility to continue to deploy capital to maximise shareholder value.”
The sale, together with the recent Springfield and CityCenter transactions,means the company will have $11.6bn in liquidity to become “the premier gaming entertainment company,” MGM said.
Source: Asia Gaming Brief