MGM Resorts’ landowner wants to buy Caesars’ landowner

The company that owns the land under MGM Resorts casinos wants to merge with the company that owns the land under Caesars Entertainment casinos, and it doesn’t care who knows.

On Tuesday, MGM Growth Properties (MGP) – the real estate investment trust (REIT) that MGM Resorts spun off when it needed some quick cash in 2015 – went public with its desire to acquire VICI Properties, the REIT that emerged from the messy three-year restructuring of Caesars Entertainment.

Apparently, MGP’s private lust for VICI has gone unrequited, or, as corporations say about reluctant suitors, VICI has “elected not to engage in meaningful discussions.’ As a result, MGP has publicly declared its willingness to acquire 100% of VICI’s outstanding shares “in an effort to engage and move forward quickly to consummate a transaction.”

The all-stock deal would value VICI shares at $19.50 apiece and would leave VICI shareholders owning 43% of the combined company, while MGM’s economic ownership would fall to 41%. The combined company would control 32 properties across 11 states. MGP claims the deal would create “the largest triple-net lease REIT and a Top-15 public REIT in the [resource management zone] by enterprise value.”