Dubai World to invest in MGM Mirage, CityCenter development

By Lisa Kerner

Charlotte, N.C., Aug. 22 - Dubai World will invest about $5 billion in MGM Mirage under a definitive agreement signed by the companies. The investment, part of a long-term strategic relationship, includes a $2.7 billion investment in the Las Vegas development project CityCenter and up to $2.4 billion in purchases of MGM Mirage common stock.

In addition, MGM Mirage and Dubai World will enter into a 50/50 joint venture in CityCenter development in Las Vegas. Dubai World will acquire a "significant minority equity position in MGM Mirage," according to a company news release.

Dubai World, through Infinity World Investments, will purchase up to 28.4 million shares of MGM Mirage for a 9.5% equity stake in the company. The $2.4 billion share purchase will be done through a combination of a public tender offer for 14.2 million shares priced at $84 each and an agreement to buy an additional 14.2 million shares directly from the Las Vegas gaming company for the same per-share price.

The tender offer is expected to begin the week of Aug. 27.

MGM Mirage stands to gain an additional $100 million if the CityCenter project is completed on time and within budget.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.