No Merger For Las Vegas Casino REITs, Group SaysReal Estate Investment Trumps Won't Combine In $5.8B Deal |
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Vici Properties, landlord for casinos operated by Caesars Entertainment, said Wednesday that it has rejected a takeover offer from a casino-related entity affiliated with Caesars’ rival MGM Resorts International.
Earlier this month, MGM Growth Properties, a landlord for MGM casinos, offered to acquire all of the outstanding shares of common stock of Vici for $19.50 per share. According to a report from the Las Vegas Review-Journal, the deal was valued at nearly $6 billion.
Vici is an “experiential” real estate investment trust (REIT) that owns a portfolio of casino-hotel property, including Caesars Palace on the Las Vegas Strip. Altogether, the REIT owns 20 gambling facilities nationwide, leasing the casinos back to brands such as Caesars, Horseshoe, Harrah’s and Bally’s. REITs are eligible for special tax savings.
“Vici Properties, in consultation with its financial and legal advisers, carefully and thoroughly reviewed MGP’s unsolicited and non-binding proposal, following which Vici Properties’ Board of Directors unanimously determined that pursuing it was not in the best interests of the company and its stockholders,” a news release said. A separate news release from MGP stated that a “combination is extremely attractive strategically and financially for both Vici and MGP.”
The REIT behind Caesars’ casinos was established when the casino giant’s main operating unit exited from Chapter 11 bankruptcy protection. Caesars doesn’t have an equity interest in Vici.
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