MGM MIRAGE and Mandalay
Resort Group today jointly announced that they have entered into a
definitive agreement with an affiliate of Marian Ilitch to sell Mandalay’s
indirect 53.53% interest in the MotorCity Casino to Mrs. Ilitch’s
affiliate. Mrs. Ilitch, through affiliates, currently owns a 25% interest
in the casino. The MotorCity Casino is located in Detroit, Michigan, where
a subsidiary of MGM MIRAGE owns and operates the MGM Grand Detroit Casino.The transaction provides for a purchase price of $525 million in cash and
contemplates an additional payment to take into account excess cash at
closing. The transaction was entered into in light of applicable Michigan
law which precludes MGM MIRAGE from owning or operating more than one
casino in Detroit. The waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act has expired, but the transaction is subject to
customary closing conditions contained in the definitive agreement and
Michigan regulatory review and approval. The transaction will be completed
immediately prior to and subject to the closing of MGM MIRAGE’s merger
with Mandalay which is expected to occur in the second quarter of 2005.
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