MGM Grand, Inc. (NYSE: MGG) today
announced the preliminary results of the Company`s tender offer to purchase
6,000,000 shares at $35 per share, which expired Friday, July 31, 1998 at
Based on the preliminary count, subject to final verification,
approximately 15,748,193 shares of the Company`s common stock were tendered,
representing 27.1% of the outstanding shares, including approximately
6,724,054 shares which were tendered through Notices of Guaranteed Delivery.
Since more shares were tendered than the 6,000,000 sought in the tender offer,
those shares to be purchased are subject to proration.
Depending on the number of shares ultimately delivered and the number of
odd lots included in those deliveries, the proration of shares to be purchased
may change. Based on the preliminary count, subject to final verification and
upon approval of the Company`s Board of Directors, the proration of shares to
be purchased is expected to be approximately 38.1% of the shares tendered
assuming the receipt of the shares tendered through Notices of Guaranteed
Delivery. Payment for the shares properly tendered and accepted will be made
as soon as practicable.
As set forth in the Company`s Offer to Purchase dated July 2, 1998, the
tender offer is part of the Company`s program to repurchase an aggregate of
12,000,000 shares of common stock. The Company anticipates that, depending on
market conditions, the remaining 6,000,000 shares in the repurchase program
may be acquired in the open market, in private transactions, through a
tender offer or offers or otherwise. The Company may in the future also
repurchase common stock outside of the repurchase program in the open market,
in private transactions, through tender offers or otherwise, although no such
purchases are presently contemplated.
As a result of the tender offer, the percentage of common stock held by
Kirk Kerkorian and Tracinda Corporation, which is wholly owned by Mr.
Kerkorian, will increase from approximately 62.5% of the outstanding shares to
approximately 69.7%. Tracinda has advised the Company that it will file a 13D
with the Securities and Exchange Commission stating that, depending on market
conditions and subject to compliance with all applicable laws, it may seek to
increase its ownership of common stock through purchases in the open market,
in private transactions, through tender offers or otherwise.
MGM Grand, Inc. is an entertainment, hotel and gaming company
headquartered in Las Vegas, Nevada. The Company operates the MGM Grand
Hotel/Casino in Las Vegas, the MGM Grand Hotel/Casino in Darwin, Australia and
owns a 50% interest in the New York - New York Hotel/Casino in Las Vegas,
Nevada. The Company also manages casinos in Nelspruit, Witbank and
Johannesburg (opening in September, 1998), South Africa. MGM Grand also has
announced plans to develop hotel/casino resorts in Detroit, Michigan and
Atlantic City, New Jersey.
Statements in this release which are not historical facts are
“forward-looking” statements and “safe harbor statements” under the Private
Securities Litigation Reform Act of 1995 that involve risks and/or
uncertainties, including risks and/or uncertainties as described in the
Company`s Annual Report on Form 10-K for the fiscal year ended December 31,