MGM MIRAGE and Dubai World Increase Their Tender Offer to 15,000,000 Shares of
MGM MIRAGE Common Stock and Set a Fixed Price of $80.00 Per Share
LAS VEGAS, Jan. 16 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE: MGM) and
Dubai World today jointly announced that they will increase their offer to
purchase shares of MGM MIRAGE common stock from 10,000,000 to 15,000,000, and
set the tender price at $80.00 per share from the previously announced price
range of $75.00 to $80.00 per share. The offer price represents approximately
a 20.4% premium over MGM MIRAGE's closing stock price of $66.47 on
January 15, 2008.
With respect to the shares of MGM MIRAGE common stock that are tendered
and accepted for purchase pursuant to the offer, MGM MIRAGE will purchase up
to 8,500,000 of said shares and Dubai World will purchase up to 6,500,000 of
said shares.
Tracinda Corporation is the beneficial owner of 153,837,330 shares of MGM
MIRAGE common stock and has informed MGM MIRAGE that it will not tender any of
its shares.
Dubai World, through its affiliates Infinity World (Cayman) L.P. and
Infinity World Investments LLC, is the beneficial owner of 19,548,838 shares
of MGM MIRAGE common stock. It is anticipated that the bidder on behalf of
Dubai World will be Infinity World (Cayman) L.P. ("Infinity World").
Under the procedures for the Tender Offer, MGM MIRAGE's stockholders will
have the opportunity to tender some or all of their shares at a price of
$80.00 per share. If more than 15,000,000 shares are properly tendered and
not withdrawn, then MGM MIRAGE and Infinity World will purchase shares on a
pro rata basis, subject to the conditional tender offer provisions that will
be described in the offer to purchase that will be distributed to
stockholders. Stockholders whose shares are purchased in the offer will be
paid the $80.00 per share price net in cash, without interest, after the
expiration of the offer period. The offer is not contingent upon any financing
condition or any minimum number of shares being tendered. The offer is
subject, however, to a number of other customary terms and conditions to be
specified in the offer to purchase that will be distributed to stockholders.
No brokerage fees or commissions will be charged to holders who tender their
shares.
Neither MGM MIRAGE, its Board of Directors, nor Dubai World and its
affiliates are making any recommendation to stockholders as to whether to
tender or refrain from tendering their shares into the tender offer.
Stockholders must decide how many shares they will tender, if any.
About MGM MIRAGE
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected
development companies with significant holdings in gaming, hospitality and
entertainment, owns and operates 17 properties located in Nevada, Mississippi
and Michigan, and has 50% investments in four other properties in Nevada, New
Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and
non-casino resorts, separately and with partners in Las Vegas, Atlantic City,
the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports
responsible gaming and has implemented the American Gaming Association's Code
of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received
numerous awards and recognitions for its industry-leading Diversity Initiative
and its community philanthropy programs. For more information about MGM
MIRAGE, please visit the company's website at http://www.mgmmirage.com.
About Dubai World
Dubai World is a major investment holding company which wholly owns or has
substantial interest in a portfolio of businesses that includes DP World,
Jafza, Nakheel, Dubai Drydocks, Maritime City, Istithmar, Kerzner, One & Only,
Atlantis, Barney's, Island Global Yachting, Limitless, Inchcape Shipping
Services, Tejari, Technopark and Tamweel. The Dubai World Group has more than
50,000 employees in over 100 cities around the globe.
Dubai World's iconic real estate projects include the Nakheel's Palm
developments and The World. The group also has extensive real estate
investments in the US, the UK and South Africa, unique hospitality
destinations in every corner of the world, and is a leading global port
operator. In the last five years, Dubai World has developed 80,000 luxury
residential villas and apartments and approximately three million square feet
of retail space.
Forward-Looking Statement
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 public
filings with the Securities and Exchange Commission.
Tender Offer Statement
This press release is for informational purposes only and is not an offer
to buy or the solicitation of an offer to sell any securities. The
solicitation and the offer to buy shares of MGM MIRAGE common stock will be
made only pursuant to an offer to purchase and related materials that MGM
MIRAGE and Infinity World will jointly file with the U.S. Securities and
Exchange Commission (the "SEC") on Schedule TO. After MGM MIRAGE and Infinity
World have jointly filed with the SEC such tender offer statement on Schedule
TO, MGM MIRAGE stockholders and other investors should read these materials
carefully because they will contain important information, including the terms
and conditions of the offer. After MGM MIRAGE and Infinity World have jointly
filed with the SEC such tender offer statement on Schedule TO, MGM MIRAGE
stockholders and other investors may obtain copies of these materials without
charge from the SEC through the SEC's website at www.sec.gov, or from
Mackenzie Partners, Inc., the information agent for the tender offer. MGM
MIRAGE stockholders and other investors are urged to read carefully those
materials prior to making any decisions with respect to the offer.
SOURCE MGM MIRAGE
Investment Community, Dan D'Arrigo, EVP & Chief Financial Officer,
+1-702-693-8895, or Media, Alan M. Feldman, Senior Vice President of Public
Affairs, +1-702-891-7147, afeldman@mirage.com, both of MGM MIRAGE
