MGM Mirage stated on Friday that it had come to an agreement with the State of New Jersey's Division of Gaming Enforcement to place its 50% stake in Atlantic City's Borgata Hotel Casino & Spa in a divestiture trust after the regulatory group found problems with its partner in Macau.MGM Mirage trades on the “New York Stock Exchange” under the stock symbol “MGM”. For the Latest information regarding “MGM”, make sure to visit the Most Exclusive and In Depth newsletter website at: http://www.wallstreetgrand.com/.
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MGM Mirage (NYSE:MGM) said Friday that it had reached an agreement with the State of New Jersey's Division of Gaming Enforcement to place its 50% stake in Atlantic City's Borgata Hotel Casino & Spa in a divestiture trust after the regulatory group found problems with its partner in Macau.
Under the terms, which have to be approved by New Jersey's Casino Control Commission, MGM Mirage would be the sole beneficiary of the trust. The company would have 18 months to sell its stake in the Borgata and related property, a sale which would have to be approved by the Commission. If the sale isn't completed by the The settlement would allow it to avoid a potential ruling from the Casino Control Commission that the company isn't fit to do business in the state. Such a ruling could precipitate inquiries in other states where MGM Mirage operates or damp enthusiasm for a possible initial public offering of the Macau joint venture's assets on the Hong Kong Stock Exchange later this year. MGM Mirage's move effectively positions it to move out of New Jersey, where the Borgata is seen as a relative bright spot in a bleak environment.
The settlement, if approved, would clear the way for an initial public offering based on Macau assets, which is expected to rise between $250 and $500 million for the company. Proceeds from the IPO as well as the Borgata sales are expected to help MGM Mirage pay down its hefty debt.
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