UPDATE 1-MGM Resorts files to list Macau venture, stock up | Reuters
CURRENT PRICE: 11.47
UPDATE 1-MGM Resorts files to list Macau venture, stock up
Mon Sep 27, 2010 3:09pm EDT
* Goldman estimates proceeds in excess of $300 mln
* MGM shares rise over 7 percent (Adds analyst comment, share movement)
HONG KONG/LOS ANGELES, Sept 27 (Reuters) - MGM Resorts International (MGM.N) said its joint venture in the booming Asian enclave of Macau, MGM China, has filed for an anticipated initial public offering in Hong Kong, sending its shares up 7.5 percent on Monday.
The Las Vegas-based casino operator, in a filing with the U.S. Securities and Exchange Commission, gave no details of the timing or terms of the proposed IPO.
Filings are typically followed by a listing hearing in Hong Kong within four to six weeks, although times can vary.
MGM Chief Executive Jim Murren said in August that the company expected to take the unit public in Hong Kong sometime later in 2010 -- ideally after the venture had cleared the way for a second Macau property.
MGM operates its sole Macau casino as a 50-50 joint venture with Pansy Ho, daughter of Macau gambling tycoon Stanley Ho.
Goldman Sachs analyst Steve Kent estimated on Monday that an offering could generate proceeds of more than $300 million.
"We view an IPO of MGM Macau as an important liquidity event for MGM and, while not unexpected, we think today's filing is a positive step forward for MGM's shares," Kent said in a research note.
Despite a heavy debt load, MGM has been able to maneuver through the recent financial crisis, but it will have additional billions in debt coming due over the next few years and management has vowed to reduce the company's leverage.
An MGM listing would follow Hong Kong IPOs by affiliates of U.S.-based rivals Wynn Resorts Ltd (WYNN.O) and Las Vegas Sands Corp (LVS.N), which spun off their Macau assets last year to form Hong Kong-listed Wynn Macau Ltd (1128.HK) and Sands China Ltd (1928.HK), respectively.
Macau's other three casino operators are SJM Holdings (0880.HK), Galaxy Entertainment Group Ltd (0027.HK) and Melco Crown Entertainment Ltd (MPEL.O).
BNP Paribas (BNPP.PA), Bank of America-Merrill Lynch (BAC.N), JP Morgan (JPM.N) and Morgan Stanley (MS.N) have won the mandate for the long-awaited deal, sources told Reuters earlier.
The IPO would make the MGM Macau casino the last of Macau's six gambling licensees to go public.
Shares of MGM Mirage were up 80 cents at $11.47 in afternoon trading on the New York Stock Exchange. (Reporting by Doug Young, Kennix Chim and Deena Beasley; Editing by David Cowell and Gerald E. McCormick)
CURRENT PRICE: 11.47
UPDATE 1-MGM Resorts files to list Macau venture, stock up
Mon Sep 27, 2010 3:09pm EDT
* Goldman estimates proceeds in excess of $300 mln
* MGM shares rise over 7 percent (Adds analyst comment, share movement)
HONG KONG/LOS ANGELES, Sept 27 (Reuters) - MGM Resorts International (MGM.N) said its joint venture in the booming Asian enclave of Macau, MGM China, has filed for an anticipated initial public offering in Hong Kong, sending its shares up 7.5 percent on Monday.
The Las Vegas-based casino operator, in a filing with the U.S. Securities and Exchange Commission, gave no details of the timing or terms of the proposed IPO.
Filings are typically followed by a listing hearing in Hong Kong within four to six weeks, although times can vary.
MGM Chief Executive Jim Murren said in August that the company expected to take the unit public in Hong Kong sometime later in 2010 -- ideally after the venture had cleared the way for a second Macau property.
MGM operates its sole Macau casino as a 50-50 joint venture with Pansy Ho, daughter of Macau gambling tycoon Stanley Ho.
Goldman Sachs analyst Steve Kent estimated on Monday that an offering could generate proceeds of more than $300 million.
"We view an IPO of MGM Macau as an important liquidity event for MGM and, while not unexpected, we think today's filing is a positive step forward for MGM's shares," Kent said in a research note.
Despite a heavy debt load, MGM has been able to maneuver through the recent financial crisis, but it will have additional billions in debt coming due over the next few years and management has vowed to reduce the company's leverage.
An MGM listing would follow Hong Kong IPOs by affiliates of U.S.-based rivals Wynn Resorts Ltd (WYNN.O) and Las Vegas Sands Corp (LVS.N), which spun off their Macau assets last year to form Hong Kong-listed Wynn Macau Ltd (1128.HK) and Sands China Ltd (1928.HK), respectively.
Macau's other three casino operators are SJM Holdings (0880.HK), Galaxy Entertainment Group Ltd (0027.HK) and Melco Crown Entertainment Ltd (MPEL.O).
BNP Paribas (BNPP.PA), Bank of America-Merrill Lynch (BAC.N), JP Morgan (JPM.N) and Morgan Stanley (MS.N) have won the mandate for the long-awaited deal, sources told Reuters earlier.
The IPO would make the MGM Macau casino the last of Macau's six gambling licensees to go public.
Shares of MGM Mirage were up 80 cents at $11.47 in afternoon trading on the New York Stock Exchange. (Reporting by Doug Young, Kennix Chim and Deena Beasley; Editing by David Cowell and Gerald E. McCormick)