MGM Resorts International announced that it has received an acquisition proposal from People Incorporated, formerly known as IAC, to purchase all outstanding MGM Resorts shares that it does not already own for $48.30 per share in cash.
Based on the offer price and MGM Resorts’ outstanding shares, the proposal values the company at approximately $12.4 billion on an equity basis. Including debt, the transaction carries an enterprise value of roughly $18 billion, making it one of the largest proposed gaming industry acquisitions in recent years.
According to the company, its Board of Directors will review the proposal with the assistance of financial and legal advisors to determine the course of action it believes is in the best interests of MGM Resorts and its shareholders.
MGM Resorts emphasized that shareholders do not need to take any action at this time while the board evaluates the offer.
The company also cautioned that there can be no assurance that the proposal, or any future proposal, will lead to a definitive agreement or completed transaction. MGM Resorts noted that if a transaction were to occur, there is no certainty regarding the timing, price, or other terms and conditions.
MGM Resorts said it remains focused on strengthening its position as a leading global gaming and entertainment company while the review process proceeds.
KEY QUOTES:
“The company’s Board of Directors, in consultation with its financial and legal advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the company and all of its shareholders. MGM Resorts shareholders do not need to take any action at this time.
The company cannot provide assurances that such proposal or any subsequent proposal will result in an agreement or a transaction being reached or, if so, as to the timing, price or other terms and conditions of any such agreement. The company remains focused on advancing its position as the world’s premier gaming entertainment company.”
MGM Resorts International
