Company selling South Africa operations

Thursday, Nov. 8, 2001 | 10:18 a.m.

MGM MIRAGE of Las Vegas announced today it has agreed to sell its operations in the Republic of South Africa for an undisclosed amount.

The Las Vegas-based casino operator manages, but doesn't own, four casinos in South Africa. The buyers were identified as Tsogo Investment Holding Co. Ltd. and Southern Sun Gaming Investments Ltd. If the deal receives regulatory approval, MGM MIRAGE anticipates the sale will close in the first quarter of 2002.

The casinos produced $3.44 million in cash flow over the first nine months of 2001, less than one-half of 1 percent of the company's total cash flow over that period. Proceeds will be used to pay down debt.

"Our South African operations have been an extremely successful but small part of our business," said Jim Murren, president and chief financial officer of MGM MIRAGE. "The sale will enable us to focus more closely on our core businesses and larger expansion opportunities."

Following the sale, MGM MIRAGE's only overseas gaming operation will be its hotel-casino in Darwin, Australia.

archive