MGM Growth Properties stock rallies after VICI Properties buyout deal, valued at $17.2 billion including debt

Shares of MGM Growth Properties LLC MGP, -0.64% changeable up 7.4% successful premarket trading Wednesday, aft the existent property concern spot announced an statement to beryllium acquired by VICI Properties Inc. VICI, -1.40% successful a woody valued astatine $17.2 billion, including the presumption of $5.7 cardinal of debt. VICI shares edged up 0.3% and MGM Resorts International's banal MGM, -1.12% gained 3.8% up of the open. Under presumption of the deal, MGM Growth shareholders volition person 1.366 shares of recently issued VICI banal for each MGM Growth stock they own, which based connected Tuesday's banal closing prices represents an 11.4% premium. MGM Resorts MGM, -1.12% volition person $4.4 cardinal successful currency for the bulk of its MGP Operating Partnership units that it holds, and volition clasp astir 12 cardinal units successful the recently formed operating concern of VICI Properties. After the woody closes, which is expected to hap successful the archetypal fractional of 2022, VICI Properties volition participate into a maestro lease with MGM Resorts, with an archetypal full yearly rent of $860.0 million. "Through this transformative strategical acquisition, we are merging MGP's best-in-class portfolio into VICI's best-in-class absorption and governance platform, creating the premier gaming, amusement and leisure REIT successful America," said VICI Chief Executive Ed Pitoniak. MGM Growth shares person rallied 18.5% twelvemonth to day done Tuesday, portion the S&P 500 SPX, +0.82% has gained 17.8%.