MGM Resorts International has agreed to buy Infinity World Development Corp’s 50% stake in CityCenter Holdings. This makes it the sole owner of CityCenter.
The $2.125 billion purchase price represents an implied valuation of $5.8 billion based on a $1.5 billion net debt, after taking into account the recently completed sale of a two-acre parcel of land. Also, CityCenter is located on the same strip as Aria Resort & Casino and Vdara Hotel and Spa. The company, however, intends to monetize both of them.
“CityCenter has consistently elevated the Las Vegas experience over the years, contributing to this vibrant city’s undeniable position as a top tourism and business destination,” said Bill Hornbuckle, CEO, and president of MGM Resorts. By bringing all of CityCenter under MGM Resorts’ corporate structure and strategy, we will be able to consolidate financial results. We can also strengthen our operating guest experience, and advance our vision of becoming the world’s premiere gaming entertainment company.”