VICI Properties, the real estate investment trust spun off from Caesars Entertainment in 2017, has agreed to acquire MGM Growth Properties, itself spun off from MGM Resorts, for $17.2bn.
Under the deal, MGM Growth Properties Class A shareholders will receive 1.366 shares of newly issued VICI stock for every share of MGM Growth Properties they hold. With VICI’s shares trading at an average of $31.47 in the five days before the deal, this suggests a price of $43.00 per MGM Growth Properties share, a 15.9% premium compared to its share price before the deal.
MGM Growth Properties’ controlling shareholder, MGM Resorts, will receive $43.00 in cash for the redemption of the majority of units that it holds, for a total consideration of $4.4bn. However, it will keep 12 million units.
The $17.2bn total consideration figure also includes VICI’s assumption of around $5.7bn in MGM Growth Properties’ debt.
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