Real-estate investment trust Vici Properties Inc. said it would buy casino-resort owner MGM Growth Properties LLC for $17.2 billion, including about $5.7 billion in debt, in a stock-for-stock transaction.
The companies on Wednesday said MGM Growth Properties Class A shareholders would get 1.366 shares of newly issued Vici stock for each share they own. The exchange ratio represents $43 a share of MGM Growth Properties shares, reflecting a 16% premium over MGM Growth Properties’ closing price Tuesday, the companies said.
The agreement also involved MGM Resorts International , MGM Growth Properties’ controlling shareholder. MGM Resorts said it would get $43 per unit, or about $4.4 billion in cash, for the redemption of most of the MGM Growth Properties operating partnership units it holds.
MGM Resorts, which spun off MGM Growth Properties in 2016, said it would own a roughly 1% stake in the Vici operating partnership, worth about $370 million.
Shares of MGM Growth Properties rose more than 10% in premarket trading. MGM Resorts shares rose about 5% in premarket trading, while Vici shares were about flat.