MGM Resorts International on Thursday announced that it has closed on its previously announced acquisition of 188,100,000 ordinary shares of its subsidiary MGM China Holdings Limited from Grand Paradise Macau, according to a press release.
As a result of the transaction, the Company now owns approximately 56 percent of MGM China’s outstanding common shares, leaving Ms. Pansy Ho with approximately 22.5 percent.
“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, MGM Resorts said it issued approximately 7 million shares of its common stock and additionally paid consideration of $100 million to GPM’s subsidiary, Expert Angels Limited (EA). The company also agreed to pay GPM (or its nominee) a deferred cash payment of $50 million.
The shares 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, through EA, Ms. Ho acquired four million shares of the company’s stock from Tracinda Corporation. With the completion of these transactions, Ms. Ho will own approximately 4.8 percent of the outstanding common stock of the company.