Pansy Ho Chiu-king has agreed to take a back seat in a restructuring announced last night, allowing MGM Resorts International to take majority control of MGM China Holdings when it lists in Hong Kong.
Under the terms of the deal, MGM Resorts said it would end up with 51 per cent of MGM China, up from 50 per cent previously, while Ho's stake would fall to 29 per cent from 50 per cent, with the remaining 20 per cent being offered to the public.
MGM China is intended to be the listed vehicle holding the MGM Macau casino property and gaming licence.
The estimated US$1 billion or so initial public offering was originally due in the second half of last year, but has suffered delays.
MGM Resorts said Ho had agreed to buy US$300 million of MGM Resorts' convertible senior notes. It said the terms of the notes would be similar to those of MGM Resorts' existing 4.25 per cent convertible senior notes which fall due 2015.
'These agreements remain subject to certain conditions, including required approvals of the Hong Kong stock exchange, and there can be no assurance that the proposed transactions will be consummated,' MGM Resorts added.