Mandalay's 53.53% Interest in the MotorCity
Casino for Approximately $525 million
|LAS VEGAS, March 23, 2005 - 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.
MGM MIRAGE headquartered in Las Vegas, Nevada, is one of the world's leading and most respected hotel and gaming companies. The Company owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in three other casino resorts in Nevada, New Jersey and the United Kingdom.
Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus Circus -- Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also owns and operates Gold Strike, a hotel/casino in Tunica County, Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about future financial and operating results and MGM MIRAGE's anticipated acquisition of Mandalay Resort Group.
|Also See:||MGM Grand Detroit Casino May Be Sold as Result of MGM MIRAGE Pending Merger with Mandalay Resort Group / December 2004|
|Detroit's Three Casinos Setting Records Nearly Every Month After Sept. 11 / March 2002|
|MotorCity Casino, a $150 Million Temporary Casino, Licenses the La Shish Name for Culinary Lineup / Sept 1999|