MACAU MGM Resorts International and Macau joint venture partner Pansy Ho have agreed on a deal that will give MGM Resorts majority control of the venture, in conjunction with a planned initial public offering that is expected to generate about US$1 billion.
MGM Resorts will have 51% ownership of MGM China Holdings Ltd. after its Hong Kong IPO, which is likely to happen sometime next month. Ho, daughter of controversial Macau gaming magnate Stanley Ho, will retain a 29% interest in the company. The remainder of the MGM China shares will be sold to the public, The Wall Street Journal reports.
Under the deal, Ho will acquire US$300 million of MGM Resorts convertible senior notes and will sell at least 1% of her 50% ownership in the joint venture to MGM Resorts. MGM Resorts would receive net proceeds from the debt sale, but not the IPO, while Ho would use IPO proceeds to fund the debt purchase.
The agreement is subject to regulatory approval.
