People Withdraws MGM Resorts Acquisition Offer
Barry Diller’s People has withdrawn its proposal to acquire the remaining 73% of MGM Resorts, ending discussions over a deal that valued the operator at US$18bn.
MGM Resorts has confirmed that Barry Diller’s People has withdrawn its offer to acquire the shares in the company it does not already own.
People submitted the proposal in June, seeking to acquire the remaining 73% of MGM Resorts in a transaction that valued the company at US$18bn.
The company will retain its existing stake of 66.8 million shares, representing approximately 27% of MGM Resorts.
Barry Diller, chairman and senior executive of People, said:
“There are lots of ingredients that go into a proposal of this kind on its way to completion. We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time.
“What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares, representing approximately 27 per cent of MGM Resorts, and have total confidence in both the management and the company's prospects.”
MGM Resorts To Remain Standalone Company
Paul Salem, chairman of the MGM Resorts Board, said the company would continue operating independently following the withdrawal of the proposal.
“The board remains excited to continue to lead MGM Resorts as a standalone company,” said Salem.
“Our leading position in Las Vegas, our best-in-class regional properties and BetMGM's continued momentum highlight the value we bring to our shareholders. In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”
Fine In Pennsylvania
The announcement comes as the Pennsylvania Gaming Control Board (PGCB) approved a consent agreement involving MGM Resorts, resulting in a $50,250 fine for failing to file a principal licensing application within the required timeframe.
The PGCB’s Office of Enforcement Counsel also submitted a consent agreement involving Germany-based CountR over an unapproved change of control relating to its licence and a failure to pay required licensing fees.
The agreement was approved by the regulator, with CountR required to pay $50,000 to settle the outstanding licensing matter.
