LAS VEGAS, Feb. 14, 2022 /PRNewswire/ — MGM Resorts International (the “Company” or “MGM Resorts”) (NYSE: MGM) and IAC (NASDAQ: IAC) today announced that they will each purchase 4.5 million shares of MGM Resorts’ common stock from Corvex Management LP (“Corvex”) at $45 per share, for a total aggregate amount of $405 million, or $202.5 million each.
“Today’s announcement is a testament to the confidence we have in the long-term trajectory of our business and reflects the commitment we have to our capital allocation strategy, which includes returning cash to shareholders and maintaining a strong balance sheet,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “With this purchase, we have now bought back approximately 11.5 percent of our outstanding shares, showing our continued confidence in MGM stock.”
Following the transaction, funds associated with Corvex will continue to own approximately 6.67 million shares, or 1.5% of the Company’s outstanding common stock.
“Keith Meister shares our strategic vision for MGM Resorts to be the world’s premier gaming entertainment company, and we look forward to having him continue to serve as a valuable member of our Board,” said Paul J. Salem, Chairman of the Board, MGM Resorts.
“IAC is grateful to be a MGM Resorts shareholder, and happy for this opportunity to increase our ownership,” said Joey Levin, CEO of IAC. Following the transaction, IAC will own approximately 63.5 million shares, or 14.4% of the Company’s outstanding common stock.
The purchases are expected to settle by February 16, 2022. For MGM Resorts, the purchase will be made pursuant to the terms of the Company’s Feb. 2020 $3 billion stock repurchase program, of which $636.7 million will remain following the transaction. As of Feb. 12, 2022, there were approximately 444.8 million shares of the Company’s common stock outstanding.
“I’m pleased by the transformative transactions the Company has undertaken since I joined the Board in 2019,” said Keith Meister, Managing Partner and Chief Investment Officer, Corvex Management LP. “I look forward to continuing to serve as a Board member.”
