MGM Resorts International completes redemption of 37.1 million MGP operating partnership units for $1.2 billion

MGM Resorts International completes redemption of 37.1 million MGP operating partnership units for $1.2 billion

MGM Resorts International, parent company of MGM China (2282), has announced the completion of the redemption of about 37.1 million of its operating partnership units of MGM Growth Properties Operating Partnership LP for aggregate cash proceeds of approximately US$1.2 billion (HK$9.3 billion).

Following the redemption, MGM Resorts’ ownership in the Operating Partnership was reduced from 53% to 42.1%.

“Today’s announcement further demonstrates our commitment to the company’s asset-light strategy as we have significantly reduced our ownership stake in MGP to 42%, from 61% just one year ago,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts.

A strong liquidity position has been an invaluable asset to the company, added Halkyard. He noted that the firm would remain prudent in allocating its capital to maximize shareholder value, including executing on key growth opportunities, maintaining a strong balance sheet, and returning cash to shareholders