MGM Resorts International’s shareholder Tracinda Corporation is selling its 16 percent.
US.- The American media has reported that Tracinda Corporation, the renowned firm and shareholder of MGM Resorts International, would implement the selling of 16 percent of the company’s stake to Swiss bank UBS AG, as arranged last year. The global financial services firm would acquire the business for nearly US$500 million.
“Tracinda received a notice from UBS that the first four tranches of the Covered Call Options would be settled on February 10, 13, 14 and 15, respectively, at which times 2,000,000 shares of Common Stock were, or will be, transferred by Tracinda to UBS,” revealed a MGM filing to the Securities and Exchange Commission.
The Corporation funded by the late Kirk Kerkorian, who helped develop the businesses of MGM Resorts International, has been selling to UBS AG 2 million shares per day for US$23.94. The agreement has allegedly been set at the European style “covered call agreement” on June 13, 2016.
The MGM financial plan has boosted its shares price, growing 20 percent since the negotiation. Last February 7, when the selling took effect, MGM Resorts International’s shares raised to US$29.10.