MGM Mirage, Dubai World Settle on 15M Shares for Recently Announced Offering
- Jan 16, 2008
A week after revealing it would offer anywhere from 10 million to 15 million shares of MGM Mirage common stock in a Dutch Auction tender offering, MGM Mirage and Dubai World have decided to make 15 million shares available. Additionally, the tender price has now been set at $80 per share, going for the higher end of the previously announced range of $75 to $80 per share.Presently there are approximately 293.8 million outstanding MGM Mirage shares. As per the terms of the offering, MGM Mirage stockholders will have the option to tender a portion or all of their shares at $80 each, as well. The offer price is about 20.4 percent more than the stock’s closing price yesterday of $66.47. MGM Mirage stock debuted today with a notably higher price tag of $69.49. Why the decision to set the tender price at the higher amount? “Our board is confident in the company’s ability to do well in 2008,” Gordon Absher, MGM Mirage vice president of public affairs, told CPN today. “The members approved our fiscal year budget at our meeting yesterday.”One thing that has not changed since MGM Mirage and Dubai World originally announced the offering is the decision by Tracinda Corp.–majority owner of MGM Mirage stock with over 153.8 million shares, and the private investment division of billionaire financier Kirk Kerkorian–not to tender any of its shares. Las Vegas-based MGM Mirage and operates 17 gaming and entertainment properties in Nevada, Mississippi and Michigan, and holds investments in four other properties in Nevada, New Jersey, Illinois and Macau. Dubai-based investment holding concern Dubai World has a real estate portfolio in the U.A.E., as well as in U.S., the U.K. and South Africa. Over the last five years, the company has developed about 80,000 upscale residential units and 3 million square feet of retail space.