Caesars Palace in Las Vegas MGM Development Residence LLC (NYSE: MGP) is making a play to combine two of the biggest casino owners worldwide.
MGM sent a letter to the CEO and the chairman VICI Residences Inc. (OTCMKTS: VICI) proposing to acquire 100% of VICI’s outstanding typical stock for $19.50 per share in an all-stock offer.
MGM stated VICI up until now has elected not to take part in significant conversations. Maybe for an excellent factor: its stock has actually been trading for a little more than $20 a share through most of December and January. Its stock price today was selling a range from $20.50 to $23/share.
VICI has a market capitalization worth of about $6.4 billion.
VICI has not yet openly reacted to MGM’s statement of the deal this morning. MGM stated it went public with the proposal in an effort to engage and move forward rapidly to practiced a transaction.
Born out of the personal bankruptcy reorganization of Caesars Home entertainment Corp., VICI Properties was spun-off late in 2015 as the owner of a diverse portfolio consisting of 20 video gaming centers consisting of Caesars Palace Las Vegas. Its nationwide, geographically varied portfolio includes over 36 million square feet and functions around 14,500 hotel spaces and more than 150 dining establishments, bars and bars.
MGM Growth Characteristic currently owns 11 premier destination resorts in Las Vegas and elsewhere across the United States and one dining and home entertainment complex. The homes collectively make up 27,541 hotel spaces, over 2.65 million convention square video footage, over 100 retail outlets, over 200 food and drink outlets and over 20 home entertainment locations.
MGM stated it thinks that a proposed combination is exceptionally attractive tactically and economically for itself and VICI. The combination of the 2 would produce the biggest triple-net lease REIT and a Top 15 public REIT by enterprise worth.
In addition, the ownership in the combined business would gain from operational synergies, larger potential trading in VICI stock, more efficient expense of capital and additional liquidity as a substantially bigger business.
MGM stated it is working with third party financial and legal advisors and might make a definitive offer within 2 weeks assuming VICI comes to the table.