MGM Resorts To Buy Additional 4.95% Of Common Shares Of MGM China - Quick Facts

(RTTNews) - MGM Resorts International (MGM) announced that it has entered into a definitive agreement to acquire 188.10 million ordinary shares of its subsidiary MGM China Holdings Limited, from Grand Paradise Macau or "GPM", a an entity controlled by Ms. Pansy Ho.

As a result of the transaction, the Company will acquire an additional 4.95% of the outstanding ordinary common shares of MGM China and will own approximately 56% of MGM China's outstanding common shares.

As consideration for the MGM China shares, the Company will issue to GPM (or its nominee) 7.06 million shares of its common stock and pay cash consideration of $100 million.

In addition, the Company has 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 that are issued to GPM (or its nominee) are expected to be registered with the Securities and Exchange Commission and listed on the New York Stock Exchange.

In addition, the Company has been informed that Ms. Ho has entered into an agreement to acquire 4 million shares of MGM Resorts stock at $25.00 per share from Tracinda Corporation. Upon completion of these transactions, Ms. Ho would own approximately 4.8% of the outstanding common stock of MGM Resorts.

The transaction is subject to customary closing conditions and is expected to be completed during the third quarter of 2016.