LAS VEGAS, Sept. 1, 2016 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) (the "Company") today announced that it has closed on its previously announced acquisition of 188,100,000 ordinary shares of its subsidiary MGM China Holdings Limited ("MGM China") (SEHK: 2282), from Grand Paradise Macau ("GPM"), an entity controlled by Ms. Pansy Ho. As a result of the transaction, the Company owns approximately 56% of MGM China's outstanding common shares and Ms. Ho owns approximately 22.5%.
"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, the Company issued to GPM's subsidiary Expert Angels Limited ("EA") 7,060,492 shares of its common stock and paid consideration of $100 million. In addition, the Company agreed to pay GPM (or its nominee) a deferred cash payment of $50 million, which will be paid to GPM (or its nominee) over time in amounts equal to the ordinary dividends received on such shares, with a final payment on the fifth anniversary of the closing date of the transaction if any portion of the $50 million remains unpaid at that time, subject to certain conditions. The shares of the Company 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, the Company has been informed that through EA, Ms. Ho acquired four million shares of the Company's stock from Tracinda Corporation. With the completion of these transactions, Ms. Ho owns approximately 4.8% of the outstanding common stock of the Company.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is 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. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. MGM Resorts controls and holds a 76 percent economic interest in the operating partnership of MGM Growth Properties LLC (NYSE: MGP), a premier triple-net lease real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. The Company also owns 56 percent of MGM China Holdings Limited (HK: 2282), which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino. MGM Resorts is named among FORTUNE® Magazine's 2016 list of World's Most Admired Companies®. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
Statements in this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has based these statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include statements regarding the Company's ability to generate sustainable value to the Company's shareholders. A number of important factors could cause actual results to differ materially from those indicated in such forward-looking statements, including effects of economic conditions and market conditions in the markets in which the Company operates, competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, and risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) filed with the Securities and Exchange Commission. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.
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SOURCE MGM Resorts International