MGM Resorts to Increase Stake in MGM China
Aug 16, 2016
Demonstrates Confidence and Commitment to Macau
HONG KONG, Aug 16, 2016 – MGM China Holdings Limited (“MGM China” or the “Company”; SEHK Stock Code: 2282) today announced MGM Resorts International (MGM Resorts) has entered into a definitive agreement to acquire 188.1 million shares or 4.95% of MGM China from Grand Paradise Macau Limited, an entity controlled by Ms. Pansy Ho.
As consideration for the MGM China shares, MGM Resorts will issue 7,060,492 shares of its company to a company owned by Ms. Ho, pay cash US$100 million, and make a deferred cash payment of US$50 million over a maximum of five years, upon satisfying certain conditions.
As a result of the transaction, MGM Resorts will increase its ownership of MGM China to approximately 56% from 51%; and Ms. Ho and Grand Paradise Macau Limited together will own 22.49% vs. the previous 27.44% position. Ms. Ho will remain a major shareholder of MGM China and continue to play a significant role in our business.
In addition, the Company has been informed that Ms. Ho has entered into an agreement to acquire 4 million shares of MGM Resorts 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.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: “This transaction further strengthens the relationship between the Company's major shareholders and reinforces their collective commitment to MGM China and Macau.”
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About MGM China Holdings Limited
MGM China (HKEx: 2282) is a leading developer, owner and operator of gaming and lodging resorts in the Greater China region. We are the holding company of MGM Grand Paradise, SA which holds one of the six gaming concessions/subconcessions to run casino games in Macau. MGM Grand Paradise, SA owns and operates MGM MACAU, the award-winning premium integrated resort located on the Macau Peninsula and is developing a second resort, MGM COTAI which is expected to more than double our presence in the world’s largest gaming market, Macau.
MGM China is majority owned by MGM Resorts International (NYSE: MGM) 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. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
For further enquiries, please contact:
MGM China Holdings Limited
Sidney Luk - Vice President of Investor Relations
Tel: (853) 8802 1886 / (852) 2587 8632