MGM Resorts International has become the latest company to sell off a famous Las Vegas asset after entering into a definitive agreement to sell Circus Circus for US$825 million.
The sale, to an affiliate of Treasure Island owner Phil Ruffin, comes just weeks after Caesars Entertainment sold the Rio as it looks to streamline operations ahead of its impending merger agreement with Eldorado Resorts.
Explaining the reasons for its Circus Circle sale, MGM Resorts Chairman and CEO Jim Murren said, “MGM Resorts has engaged in an exhaustive process to evaluate its owned real estate and remains committed to executing its asset-light strategy in a measured way that maximizes value for its shareholders.
“The Company expects to utilize the proceeds from this transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility.”
The transaction, which is expected to close before the end of the year, will comprise US$662.5 million in cash and a US$162.5 million note due 2024.
Opened in 1968, Circus Circus was acquired by MGM in 2005 and currently employees around 2,300 staff.
“Circus Circus has anchored the north end of the Las Vegas Strip for over 50 years, and I am excited to add it to my casino portfolio,” said Ruffin.
RelatedPosts
