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Tender offer for MGM Mirage increased to 15 million shares at set price of $80
By Lisa Kerner
Charlotte, N.C., Jan. 16 - MGM Mirage and Dubai World increased their offer to buy MGM Mirage shares to 15 million from 10 million shares.
In addition, the tender price was increased to $80.00 per share from the previously announced price range of $75.00 to $80.00 per share, according to a company news release.
The new offer price is a 20.4% premium over MGM Mirage's closing stock price of $66.47 on Jan. 15.
Of the shares tendered and accepted for purchase in the offer, MGM Mirage will purchase up to 8.5 million shares while Dubai World will purchase up to 6.5 million shares.
Tracinda Corp., beneficial owner of 153,837,330 shares of MGM Mirage common stock, said it will not tender any shares.
Dubai World, through its affiliates Infinity World (Cayman) LP and Infinity World Investments LLC, is the beneficial owner of 19,548,838 shares of MGM Mirage common stock.
Infinity World (Cayman) is expected to bid on behalf of Dubai World.
The tender offer allows MGM Mirage stockholders to tender some or all of their shares at the fixed price of $80.00 per share.
If more than 15 million shares are tendered, MGM Mirage and Infinity World will purchase shares on a pro rata basis, the release stated.
The offer is not contingent on financing or a minimum number of shares being tendered.
It was previously reported that Dubai World will invest some $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.
MGM Mirage is a Las Vegas gaming company.
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