MGM has confirmed that it would announce the sale of its flagship MGM Grand resort in Las Vegas by the end of the year.
Earlier in the month, the gambling and hospitality giant confirmed the sale of its Bellagio resort in Las Vegas to Blackstone Group in a $4.25 billion deal. The gambling operator has already announced the sale of its Circus Circus casino to real estate tycoon Phil Ruffin.
MGM is planning to minimize its outstandings and also generate funds to invest in new endeavors. MGM has emerged as the strongest contender for a casino license in Japan’s Osaka prefecture. The casino operator has also announced that it is ready to invest to the tune of $10 billion in Osaka.
Jim Murren, MGM CEO has also said that they are planning to reduce the majority stake in MGM Growth Properties, a real estate investment trust.
The company’s transition should result in higher free cash flow per share and a more flexible financial structure that allows MGM to better capitalize on its strengths as a casino developer and manager, Murren said.
said the company is committed to reducing its stake in MGM Growth Properties to under 50% or less. The REIT could be a buyer of the MGM Grand.
“If it came down to a transaction between a third party and MGP, we’re always going to favor MGP in a close race,” Murren said.