MGM Resorts International has announced that it is acquiring the remaining share of CityCenter from joint-venture partner Infinity World Development. It will specifically buy the Vdara hotel and Aria resort-casino.
MGM stated that the $2.9 billion transactions (which included some debt assumption) “represents an implied valuation of $5.8 billion based on net debt of $1.5 billion, after giving effect to the recently closed sale of a two-acre parcel.”
“Unifying all of CityCenter under MGM Resorts’ corporate structure and strategy will allow us to consolidate financial results. It will also enable us to strengthen our guest experience, and advance our vision of becoming the world’s premiere gaming entertainment company,” said CEO Bill Hornbuckle in a prepared statement.
He went on to say that the proceeds can fund new growth opportunities. It could also be a reference to MGM’s commitment to invest $10 billion in an integrated resort in Osaka, Japan. It would be the most expensive hotel-casino in history if approved and built.