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%.
LAS VEGAS – MGM Resorts International announced on September 1 that it has closed on its previously announced acquisition of 188,100,000 ordinary shares of its subsidiary MGM China Holdings Limited (“MGM China”), 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.
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