Wednesday, June 10, 2009
Genting buys 3.2% of MGM
Genting, the Malaysian gaming group, has paid $100m for a 3.2 per cent stake in MGM Mirage, firming a relationship that could help pave the way for future deals in Macao and the US.
Genting matched the $100m that Kirk Kerkorian, MGM Mirage’s largest shareholder, invested in the US gambling group’s $1bn equity offering last month. Genting and Mr Kerkorian’s Tracinda Corp each bought 14.3m shares at $7.
n addition to the share purchase, which Genting was not required to disclose, the group bought $100m in MGM Mirage secured notes. Genting confirmed the bond purchase in stock exchange filings on May 21. Genting, founded by Lim Goh Tong, the late Malaysian Chinese tycoon, is particularly keen to explore opportunities in Macao, where MGM Mirage has a 50-50 joint venture with Pansy Ho, the daughter of Stanley Ho, the Hong Kong gaming magnate.
The stock is being given away around $7. That's why it's attracting buyers, while Wall Street sheeps sell!
Posted by Palmoni at 7:39 AM