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The sale to VICI Properties is the latest example of MGM Resorts following the hotel industry's "asset-light" business model and stepping back from real estate ownership. Some of the company's biggest landmark resorts, like the Bellagio, have already been sold off to Blackstone.
Casino operator MGM Resorts said on Wednesday it had agreed to sell its majority stake in MGM Growth Properties to VICI Properties Inc for $4.4 billion.
MGM Growth owns a portfolio of properties that consists of 12 resorts in Las Vegas and elsewhere in the United States.
VICI’s stock offer of $43 per share represents a premium of about 16% to MGM Growth’s closing price on Monday.
The deal values MGM Growth at $17.2 billion, including $5.7 billion of debt, the companies said.
VICI’s portfolio consists of 28 gaming facilities and about 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks.
MGM Resorts will own an about 1% stake in the VICI operating partnership, worth about $370 million.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Aditya Soni)
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Tags: casino resorts, las vegas, mgm resorts international
Photo credit: MGM Resorts plans to sell a majority stake in its lodging trust, MGM Growth Properties. Håkan Dahlström / Flickr.com