MGM Resorts International has found a buyer for its 50 per cent stake in the Borgata Hotel Casino and Spa.
The company, which is believed to be withdrawing from the Atlantic City market completely, revealed that it received an offer for its share in the resort based on an enterprise value of $1.35bn for the whole asset. Based on the Borgata’s September debt balances the offer is estimated to be in excess of $250m, less than the carrying value of MGM’s investment in the property.
MGM submitted the offer to Boyd Gaming, which currently owns the other 50 per cent interest in the Borgata and has first refusal.
In a separate deal, MGM has sold the land under the Borgata resort to Vornado Realty Trust and Geyser Holdings for $73m.
