Executives of the real estate investment trust (REIT) Vici Properties Inc, the unit managing various properties operated by Caesars Entertainment Corp, has formally replied to MGM Resorts International, declining an acquisition proposal by MGM Growth Properties LLC, MGM’s real estate arm.
James Abrahamson and Edward Pitoniak, respectively chairman and chief executive of Vici, stated in a reply letter dated January 8, but publicly released on Wednesday, “Vici’s board of directors, with the assistance of its financial and legal advisors, has determined that it is not in the best interests of Vici and its shareholders to pursue your proposal.”
A press release accompanying the response letter says the board decision was reached “unanimously”.
MGM Growth Properties had suggested acquiring 100 percent of Vici Properties’ outstanding common stock for $19.50 per share, a $6 billion offer.
Several prominent casino operators have formed such investment trusts in recent years as a means of debt reduction. Vici’s properties are leased to Caesars and operate under leading brands such as Caesars, Horseshoe, Harrah’s and Bally’s.
In a Jan. 5th letter to Vici Properties, MGM Growth Properties said it’s offering $19.50 a share for Vici, an approximately $6 billion offer.
MGM made its offer public earlier this week saying, "Vici has elected not to engage in meaningful discussions."