MGM Mirage, Dubai World to Offer 10M Shares
- Jan 10, 2008
Las Vegas-based gaming and entertainment company MGM Mirage and U.A.E. investment holding firm Dubai World, which owns approximately 19.5 million shares of MGM Mirage common stock, have revealed pans to join forces in a cash Dutch auction tender offering of as many as 10 million shares of MGM Mirage common stock. The stock will carry a price between $75 and $80 per share. At last count two days ago, there were about 293.8 million shares of issued and outstanding MGM Mirage stock. While MGM Mirage and Dubai World are putting a portion of their stock holdings up for grabs, majority owner of MGM Mirage stock Beverly Hills-based Tracinda Corp.–the private investment arm of billionaire financier Kirk Kerkorian–has disclosed that it will not tender any of its nearly 154 million shares of common stock, presently representing 52.4 percent of MGM Mirage’s outstanding shares; in late December Dubai World increased its stake in MGM Mirage from 4.8 percent to 6.5 percent with the purchase of 5 million shares from a philanthropic affiliate of Kerkorian’s. Terms of the Dutch auction tender offer provide stockholders of the gaming company to tender their shares within the aforementioned price range. MGM Mirage and Dubai World had a busy year together in 2007. In November, the two closed their 50/50 joint venture deal regarding the $5.4 billion CityCenter mixed-use development in Las Vegas; the transaction called for Dubai World to contribute nearly $3 billion for its stake in the partnership. Las Vegas-based MGM Mirage owns and operates 17 gaming and entertainment properties in Nevada, Mississippi and Michigan, and holds investments in three other properties in Nevada, New Jersey and Illinois. Company stock opened today at $73.06.