The publishing group has withdrawn its proposal but says it remains open to a strategic transaction
People Inc. has withdrawn its proposal to acquire MGM Resorts, sending MGM shares down by more than 10 per cent in after-hours trading.
People Inc. chairman Barry Diller said in a statement Wednesday that although his company remains interested in a strategic transaction with MGM Resorts, the current proposal was not “coming together in the way we had hoped”.
“There are lots of ingredients that go into a proposal of this kind on its way to completion,” said Diller. “We didn’t feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time.
“What is undimmed is our belief in the future of MGM Resorts. We continue to hold 66.8 million shares representing approximately 27 per cent of MGM Resorts and have total confidence in both the management and the company’s prospects.”
MGM Resorts chairman Paul Salem said: “The Board remains excited to continue to lead MGM Resorts as a standalone company. Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM’s continued momentum highlight the value we bring to our shareholders. In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”
The statement from People Inc. noted that the company remains open to and interested in the possibility of a strategic transaction with MGM Resorts and will consider a range of alternatives.
People Inc. had offered to acquire all of the shares that it does not already own in MGM Resorts for $48.30 per share in cash.
Shares in MGM Resorts International (NYSE:MGM) closed 2.7 per cent lower at $37.85 per share in New York Wednesday, and were down a further 10.96 per cent in after-hours trading at $33.70 per share.
Shares in People Inc. (NASDAQ:PPLI) closed 2.73 per cent lower at $35.97 per share but gained 3.86 per cent in after-hours to $37.36 per share.