MGM Resorts International has acquired more shares in its Macau unit in a deal valued at about US$325 million with Pansy Ho Chiu King, who will add to her stake in the Las Vegas-based parent company.
According to a statement by MGM China Holdings to the Hong Kong Stock Exchange on Tuesday, MGM Resorts International has entered into a definitive agreement to acquire 188.1 million shares or 4.95 percent of MGM China from Grand Paradise Macau Limited, an entity controlled by Ho.
The transaction lets MGM increase its stake in MGM China Holdings to 56 percent from 51 percent, according to a statement yesterday. The company will pay Ho’s holding company US$100 million, give her about US$175 million in stock and dole out US$50 million in deferred payments over a maximum of five years in lieu of the dividends she would have received for holding the shares.
Analysts said the agreement would tighten the bonds between MGM and Ho, who has been the company’s partner in Macau for more than a decade, while also letting her diversify her holdings beyond Macau.(Macau News / The Macau Post Daily)