Real-estate investment trust Vici Properties Inc. agreed to buy MGM Growth Properties LLC in a deal that values the casino real estate owner at $17.2 billion, including debt.
Under the agreement, MGM Resorts International will receive about $4.4 billion in cash. MGM Resorts spun off MGM Growth Properties in 2016 and still controls the REIT, whose portfolio on the Las Vegas Strip includes Mandalay Bay, Luxor, Excalibur and MGM Grand Las Vegas.
In recent years, MGM Resorts has sold some of its real-estate holdings, using the proceeds to focus on new business areas including sports betting, entertainment and a casino development in Japan.
The companies on Wednesday said MGM Growth Properties Class A shareholders would get 1.366 shares of newly issued Vici stock for each share they own. The exchange ratio represents $43 a share of MGM Growth Properties shares, reflecting a 16% premium over MGM Growth Properties’ closing price Tuesday, the companies said.
The agreement also involved MGM Resorts International, MGM Growth Properties’ controlling shareholder. MGM Resorts said it would get $43 per unit, or about $4.4 billion in cash, for the redemption of most of the MGM Growth Properties operating partnership units it holds.
