VICI Properties, a real estate investment trust that was separated from Caesars Entertainment, has reached an agreement to purchase MGM Growth Properties, which was also spun off from MGM Resorts, for a sum of $17.2 billion. VICI has revealed the $17.2 billion acquisition of MGM Growth Properties – Casino – iGB
Home > Casino > VICI Announces $17.2 Billion Acquisition of MGM Growth Properties
As per the terms of the agreement, the Class A shareholders of MGM Growth Properties will receive 1.366 shares of newly issued VICI stock for each share of MGM Growth Properties they currently hold. Considering that VICI stock was trading at an average price of $31.47 in the five days preceding the transaction, this translates to a price of $43.00 per share of MGM Growth Properties, representing a 15.9% premium over the share price before the deal.
MGM Growth Properties’ majority shareholder, MGM Resorts, will redeem its controlling interest in the company for $43.00 in cash, amounting to a total of $4.4 billion. However, they will retain ownership of 12 million units.
The total consideration of $17.2 billion also encompasses approximately $5.7 billion in MGM Growth Properties debt that will be assumed by VICI.
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