This is huge!
Watch the rest of the sector rock the first part of the week too
(COMTEX) MGM MIRAGE Announces That Its Management Has Agreed on Terms to Acquire Mandalay for $71 Per Share in Cash Subject to Board Approval and Signing of a Definitie Agreement ( PRNewswire-FirstCall )
LAS VEGAS, Jun 14, 2004 /PRNewswire-FirstCall via COMTEX/ -- MGM MIRAGE (NYSE:
MGG) today announced that following discussions throughout the weekend, its
management and the management of Mandalay Resort Group (NYSE: MBG) have agreed
on all material terms of an offer whereby MGM MIRAGE would acquire Mandalay in
an all-cash transaction. MGM MIRAGE management intends to recommend approval of
the transaction to its Board of Directors, which is expected to meet tomorrow to
consider the transaction.
Under the proposed terms, MGM MIRAGE would pay $71.00 per share in cash,
representing a premium of 30% to Mandalay's closing share price on June 3, the
day before the initial offer was made. The total value of the transaction would
be approximately $7.9 billion, including a total equity value of approximately
$4.8 billion, $0.6 billion in convertible debentures, and assumption of
approximately $2.5 billion in Mandalay debt currently outstanding. MGM MIRAGE
expects the acquisition to be immediately accretive to earnings per share.
The transaction is subject to the approval of both Boards of Directors and the
signing of a definitive merger agreement, and will be contingent on approval of
Mandalay shareholders, receipt of all necessary regulatory and governmental
approvals, and satisfaction of customary closing conditions.
MGM MIRAGE owns and operates 12 casino resorts located in Nevada, Mississippi,
Michigan and Australia, and has investments in two other casino resorts in
Nevada and New Jersey. The company is headquartered in Las Vegas, Nevada, and
offers an unmatched collection of casino resorts with a limitless range of
choices for guests. Guest satisfaction is paramount, and the company has
approximately 40,000 employees committed to that result. Its portfolio of brands
include AAA Five Diamond award-winner Bellagio, MGM Grand Las Vegas -- The City
of Entertainment, The Mirage, Treasure Island ("TI"), New York - New York,
Boardwalk Hotel and Casino and 50 percent of Monte Carlo, all located on the Las
Vegas Strip; Whiskey Pete's, Buffalo Bill's, Primm Valley Resort and two
championship golf courses at the California/Nevada state line; the exclusive
Shadow Creek golf course in North Las Vegas; Beau Rivage on the Mississippi Gulf
Coast; and MGM Grand Detroit Casino in Detroit, Michigan. The Company is a
50-percent owner of Borgata, a destination casino resort at Renaissance Pointe
in Atlantic City, New Jersey. Internationally, MGM MIRAGE also owns a 25 percent
interest in Triangle Casino, a local casino in Bristol, United Kingdom. The
Company has entered an agreement to sell MGM Grand Australia in Darwin,
Australia, pending finalization. For more information about MGM MIRAGE, please
visit the company's website at mgmmirage.com.
This press release is for information purposes only and is not intended as an
offer or solicitation with respect to the purchase or sale of any security.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, including statements about future financial and operating results and MGM
MIRAGE's anticipated acquisition of Mandalay Resort Group. These statements are
based on management's current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause actual results
to differ materially from those described in the forward- looking statements.
The pertinent risk factors can be found in MGM MIRAGE's Form 10-K on file with
the SEC.
SOURCE MGM MIRAGE
CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer and Treasurer, +1-702-693-8877, or Media, A
an Feldman,
Senior Vice President, Public Affairs, +1-702-891-7147, both
f MGM MIRAGE; or
George Sard, or Stephanie Pillersdorf, both of Citigate Sard
erbinnen,
+1-212-687-8080, for MGM MIRAGE
URL: mgmmirage.com
prnewswire.com
Copyright (C) 2004 PR Newswire. All rights reserved.
-0-
KEYWORD: Nevada
INDUSTRY KEYWORD: CNO
ENT
LEI
SUBJECT CODE: TNM
*** end of story *** |
