Thursday, June 11, 2009

Genting pays US$100m for 3.2% stake in MGM

Genting Bhd has paid US$100mil for a 3.2% stake in US casino operator MGM Mirage, an official from the US company said yesterday.

The stake was offered under a US$1bil equity placement by MGM Mirage last month.

“We take this as a sign of great confidence in our company,” Alan Feldman, senior vice-president of public affairs for MGM Mirage told Reuters.

Last month, Genting and its unit Resorts World Bhd had subscribed for a combined US$100mil worth of notes issued by MGM Mirage.

The notes were part of MGM’s US$1.5bil fund-raising exercise to help settle its outstanding debts and for general corporate purposes.

Malaysian analysts had said the investments could pave the way for Genting to acquire a stake in MGM or take over the US casino operator’s investment in MGM Grand Macau.

Source : STAR
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