Skift Take
The sale to VICI Residences is the latest example of MGM Resorts following the hotel industry’s “asset-light” organization design and going back from real estate ownership. A few of the business’s greatest landmark resorts, like the Bellagio, have already been sold off to Blackstone.
Cameron Sperance
Casino operator MGM Resorts said on Wednesday it had actually agreed to offer its majority stake in MGM Development Properties to VICI Residence Inc for $4.4 billion.
MGM Development owns a portfolio of homes that includes 12 resorts in Las Vegas and somewhere else in the United States.
VICI’s stock deal of $43 per share represents a premium of about 16% to MGM Development’s closing rate on Monday.
The offer values MGM Growth at $17.2 billion, including $5.7 billion of financial obligation, the business said.
VICI’s portfolio includes 28 video gaming facilities and about 17,800 hotel rooms and more than 200 dining establishments, bars, nightclubs and sportsbooks.
MGM Resorts will own an about 1% stake in the VICI operating collaboration, worth about $370 million.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Aditya Soni)
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