On October 21st, 2007, the Dubai World may increase their interests in the Las Vegas Company, MGM at a good price, according to Dubai World chairman Zawya Dow. The board of MGM approved of the business deal on August 2007 for Dubai World to bough 50 percent share in CityCenter, a seventy-six acre construction in Las Vegas of plush hotels, condominiums and retail priced at $2.7 billion to open for business by 2009.
Dubai World also bought about $14 million in MGM Mirage casino shares at $84 per share or $1.2 billion and an additional $14 million shares from public stakeholders at the usual price. It will give Dubai World a 9.5% share in MGM. Dubai World's Chairman Sultan Ahmed Bin Sulayem, who is also a member of Dubai's executive council, said that if the market conditions are favorable, they could be more interested.
The shares of MGM Mirage closed down at 2.9% at $91.95 per share on the NYSE. Dubai World, which is a part of the economic organization of the Maktoum family, commented that they intend to complete their share purchase from MGM.
Dubai World is investing in the gaming business without constructing casino facilities in Dubai because casino wagering is prohibited in the country. State managed firms operate the government's business interests worth billions like private equity organization Istithmar, DP World and a good investment portfolio.
11/05/2007 04:57 PM