Tracinda Corp., the holding company of the late billionaire Kirk Kerkorian, continued the whittle down its ownership stake in MGM Resorts International.
Las Vegas-based Tracinda said Tuesday it will sell 10 million shares of MGM back to the company for $36.24 per share, or $362.4 million. The transaction is a 1.5 percent discount to Friday’s closing price of MGM on the New York Stock Exchange.
Kerkorian, who died in 2015 at age 98, left instructions that Tracinda – controlled by his daughters – dispose of his shares in MGM in an orderly fashion. Kerkorian founded the casino giant.
Following the purchase, which is expected to take place Friday, Tracinda will own approximately 27.2 million shares, or 4.8 percent of MGM Resorts.
In a statement, MGM Resorts Chairman and CEO Jim Murren said the stock purchase was pursuant to company planned $1 billion stock repurchase program.
“With our larger scale development projects soon coming to completion, today’s announcement underscores our confidence in the company’s meaningful cash flow trajectory and commitment to a balanced capital allocation strategy,” Murren said. “This strategy includes prudently investing in attractive growth opportunities and returning excess capital to shareholders while maintaining a strong credit profile.”
