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Mandalay to Sell Interest in the MotorCity Casino23 March 2005
LAS VEGAS – (PRESS RELEASE) -- MGM MIRAGE (NYSE: MGG) and Mandalay Resort Group (NYSE: MBG) today jointly announced that they have entered into a definitive agreement with an affiliate of Marian Ilitch to sell Mandalay's indirect 53.53% interest in the MotorCity Casino to Mrs. Ilitch's affiliate. Mrs. Ilitch, through affiliates, currently owns a 25% interest in the casino. The MotorCity Casino is located in Detroit, Michigan, where a subsidiary of MGM MIRAGE owns and operates the MGM Grand Detroit Casino.
The transaction provides for a purchase price of $525 million in cash and contemplates an additional payment to take into account excess cash at closing. The transaction was entered into in light of applicable Michigan law which precludes MGM MIRAGE from owning or operating more than one casino in Detroit. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired, but the transaction is subject to customary closing conditions contained in the definitive agreement and Michigan regulatory review and approval. The transaction will be completed immediately prior to and subject to the closing of MGM MIRAGE's merger with Mandalay which is expected to occur in the second quarter of 2005.