VICI Acquires MGM Growth Properties for $17.2 Billion

VICI is purchasing MGM Growth Properties for a hefty $17.2 billion. This news is making waves in the casino industry.

VICI Properties, a real estate investment trust that was separated from Caesars Entertainment in 2017, has reached an agreement to acquire MGM Growth Properties, which itself was spun off from MGM Resorts.

VICI is set to acquire MGM Growth Properties for a staggering $17.2 billion.

As part of the agreement, MGM Growth Properties’ Class A shareholders will receive 1.366 shares of newly issued VICI stock for each share of MGM Growth Properties they own. VICI’s stock was trading at an average price of $31.47 in the five days leading up to the deal, meaning the price per share of MGM Growth Properties is $43.00, a 15.9% premium over the price before the deal.

MGM Growth Properties’ majority shareholder, MGM Resorts, will redeem its majority units for $43.00 in cash, for a total consideration of $4.4 billion. However, it will retain 12 million units.

The total consideration of $17.2 billion also includes about $5.7 billion in MGM Growth Properties debt that VICI will take on.

You can find the complete article on iGB North America.

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