MGM Mirage shares tendered in joint offer with Dubai World to be prorated

By Lisa Kerner

Charlotte, N.C., Feb. 15 - Dubai World subsidiary Infinity World and MGM Mirage ended their joint tender offer as planned on Thursday.

Preliminary results show that 109,373,891 shares of MGM Mirage common stock were tendered, including 26,693,134 shares tendered through notices of guaranteed delivery.

The companies said they expect to purchase 15 million shares of MGM Mirage common stock in the offer using a proration factor of 13.7%.

MGM Mirage will purchase 8.5 million shares and Infinity World will purchase the remaining 6.5 million shares for a total of $1.2 billion, according to an MGM Mirage news release.

In January, MGM Mirage and Dubai World increased their offer to buy MGM Mirage shares to 15 million from 10 million shares. The tender price was also increased to $80 per share, from a range of $75 to $80 per share.

It was previously reported that Tracinda Corp., beneficial owner of 153,837,330 shares of MGM Mirage common stock, said it will not tender any shares.

Dubai World planned to 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.

© 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.