Source AP ©

Infinity World Investments LLC to buy shares of casino operator MGM Mirage Inc

Infinity World Investments LLC, a subsidiary of holding company Dubai World, would buy $1.2 billion (850 million EUR) in shares of casino operator MGM Mirage Inc.

Dubai World offered to purchase up to 14.2 million shares, or nearly 5 percent of the amount outstanding, at $84 per share, but the market price soon climbed higher.

MGM Mirage shareholders tendered only 348,903 shares, or about 0.12 percent of the outstanding shares, as of Friday.

MGM Mirage shares were up 1.3 percent, or $1.21, at $94.19 on Monday afternoon.

Dubai World said it would promptly complete the purchase, as well as complete a previously announced agreement to purchase 14.2 million shares directly from MGM Mirage at the same price.

The unit of Dubai's state-owned investment company will own about 14.5 million shares of MGM Mirage, or about 4.9 percent of the company's total outstanding shares, when the purchases are completed. It originally planned to own as much as 9.5 percent of the company.

Dubai World also announced previously that it would take a 50 percent stake in MGM Mirage's CityCenter megaresort in Las Vegas for $2.7 billion (1.92 billion EUR). The entire project is expected to cost $7.4 billion (5.25 billion EUR) to build.

Another Dubai World subsidiary is investing $300 million (212.93 million EUR) for a 25 percent stake in a joint venture to create a Las Vegas Strip casino-resort with MGM Mirage and Kerzner International Holdings Ltd.