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MGM Resorts International is reported to have reached a definitive agreement with Eldorado Resorts for the sale of the Grand Victoria Casino in Elgin, Illinois. The price is estimated to be US$327.5 million.
MGM Resorts International, along with its venture partner RBG, has executed the agreement on Monday.
MGM Resorts will get its 50% per cent share of the net proceeds after certain transaction costs, or approximately $162 million. The transaction is expected to close within one year, subject to regulatory sanction and other usual procedure.
The transaction comes in the wake of Eldorado’s attempt to expand its business in the Chicago-area market. Gary Carano, chairman and chief executive office of Eldorado, explained that it will allow them “to focus on enhancing the guest experience and operating results without the need to undertake capital investments.”
Eldorado also acquired part of Tropicana Entertainment, as it entered into an agreement with Icahn Enterprises. “Following the completion of these transactions, Eldorado has grown from a company that just four years ago was comprised of two wholly-owned properties and a 50 per cent joint ownership interest… (in) a third property in just two states to a company now that owns 26 gaming properties in 13 states,” said Carano.
ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 28 unique hotel offerings including some of the most recognisable resort brands in the industry. Expanding throughout the U.S. and around the world, the company in 2018 opened MGM COTAI in Macau and the first Bellagio-branded hotel in Shanghai. It also is developing MGM Springfield in Massachusetts. The 78,000 global employees of MGM Resorts are proud of their company for being recognised as one of FORTUNE® Magazine’s World’s Most Admired Companies®.
For more information visit us at www.mgmresorts.com.
Source: European Gaming Industry News