Oct 28 (Reuters) – MGM Resorts International said on Wednesday it had amended its existing voting agreement with People Inc after the investor withdrew its previously announced proposal to acquire the casino operator.
Media mogul Barry Diller’s People withdrew its more than $18 billion proposal in September to acquire MGM Resorts, ending a bid that would have combined the investment vehicle with one of the world’s largest casino operators.
Here are more details:
• The amended agreement requires People, Diller and related entities to vote their MGM shares in line with the board’s recommendations in the event of a sale or change-of-control transaction, subject to certain conditions
• The pact caps the group’s combined ownership of MGM at 29.9%, restricting further share purchases beyond that threshold
• MGM, meanwhile, agreed not to adopt defensive measures targeting People and its affiliates as long as they comply with the terms of the agreement
• MGM Board Chairman Paul Salem said the agreement gives MGM flexibility to pursue share repurchases and, if appropriate, a change-of-control transaction in line with its fiduciary duties
• MGM Resorts said the agreement does not commit either party to a transaction and that no deal is currently being considered, adding that it remains focused on its operating strategy and on its shareholders
(Reporting by Apratim Sarkar in Bengaluru; Editing by Maju Samuel)
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