Shares of MGM Growth Properties LLC shot up 7.4% in premarket trading Wednesday, after the real estate investment trust announced an agreement to be acquired by VICI Properties Inc. in a deal valued at $17.2 billion, including the assumption of $5.7 billion of debt. VICI shares edged up 0.3% and MGM Resorts International’s stock gained 3.8% ahead of the open. Under terms of the deal, MGM Growth shareholders will receive 1.366 shares of newly issued VICI stock for each MGM Growth share they own, which based on Tuesday’s stock closing prices represents an 11.4% premium. MGM Resorts will receive $4.4 billion in cash for the majority of its MGP Operating Partnership units that it holds, and will retain about 12 million units in the newly formed operating partnership of VICI Properties. After the deal closes, which is expected to occur in the first half of 2022, VICI Properties will enter into a master lease with MGM Resorts, with an initial total annual rent of $860.0 million. “Through this transformative strategic acquisition, we are merging MGP’s best-in-class portfolio into VICI’s best-in-class management and governance platform, creating the premier gaming, entertainment and leisure REIT in America,” said VICI Chief Executive Ed Pitoniak. MGM Growth shares have rallied 18.5% year to date through Tuesday, while the S&P 500 has gained 17.8%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
- Commodities Corner: Why oil stocks at the Cushing, Okla. WTI delivery point appear to be ‘basically empty’ - October 22, 2021
- : 4 major ways the Social Security 2100 Act would change benefits - October 22, 2021
- Outside the Box: Soaring energy prices threaten to wreck economic recovery - October 22, 2021