Financial securities firm UBS buys $339 million in MGM stock
Tracinda Corporation, who had been the largest single shareholder of MGM stocks, is liquidating its entire stake in MGM Resorts. Tracinda was obligated to begin unloading the stock in June of 2015 following the death of the company's founder, Kirk Kerkorian. Kerkorian, who also founded MGM Resorts International, listed in his last will and testament that the company was obligated to sell off the MGM stock in its entirety. Securities brokerage company UBS Securities LLC agreed to purchase the shares, for which it is paying $339 million.
Tracinda holds a 16.2% stake in MGM and will sell a total of 10 million shares to UBS at $33.89 each. The amount represents a discount of 1% off the Dec. 4 closing Price. UBS was given 48 hours to complete the payment after the deal was signed, and is expected to comply by the end of the day today. UBS must hold onto the shares for a minimum of 45 days before they can be reissued, sold or disposed of, nor can the company purchase additional shares without written permission by Tracinda.
The Tracinda-UBS deal is part of an overall agreement between the two for UBS to purchase 25% of the Tracinda stock for a total of about $500 million. After Kerkorian's death, Tracinda dumped 4 million shares in a sale to Pansy Ho Chiu King, MGM China's co-chairperson resulting in an increase in Ho's stake by about 4.8%.