MGM boosts share of Macau division
MGM Resorts has increased its stake in its own Macau division in a deal worth $325 million (€289 million).
The US casino operator has agreed to increase its stake from 51% to 56% through the purchase of shares from Grand Paradise Macau, an entity controlled by Pansy Ho, the chief executive of MGM China and daughter of tycoon Stanley Ho.
The purchase is to be financed through stock, cash, and deferred cash. In return, Ho is to acquire four million shares in MGM, increasing her ownership to 4.8%.
"MGM Resorts is committed to the long-term growth of Macau as a premier international tourism destination and we are pleased that we can build upon our longstanding relationship with Pansy to further work toward our mutual interests," said Jim Murren, chairman and chief executive of MGM Resorts.
"Together, we believe in the future of the Macau marketplace and are confident in the success of MGM China as we expand into Cotai next year.”
The transaction, including Ho’s purchase of shares from Tracinda Corporation, is expected to be completed by the end of September.
Ho said: "The transaction represents another important step in expanding this multifaceted relationship with the MGM Resorts, while remaining a significant shareholder in MGM China.
"I am excited to deepen my relationship with the MGM family."
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