MGM MIRAGE Announces Agreement with Mubadala Development
Joint venture to develop luxury non-gaming hotels and resorts globally, initially targeting Abu Dhab
LAS VEGAS, NV, December 7, 2006. MGM MIRAGE (NYSE:MGM) announced today that it and Mubadala Development Company of Abu Dhabi, U.A.E., have signed a memorandum of understanding with the aim of creating a strategic relationship to pursue non-gaming related business opportunities.
The intention is to create a joint venture with the principal purpose of developing luxury non-gaming hotels and resorts globally, but initially targeting locations in Abu Dhabi, Las Vegas and the United Kingdom.
The expectation is that the joint venture will develop its own distinctive brand identity and utilize one or more of MGM MIRAGE's powerful brands and that MGM will provide management and development services. The parties plan to enter into immediate negotiations with a view to concluding a definitive joint venture agreement in the first quarter of 2007.
Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE, said: "We are pleased to be working with Mubadala Development Company. We have a tremendous amount of respect for Mubadala and all that it has accomplished. Our areas of cooperation should provide significant opportunities to build on the strengths of our two organizations and to expand our brand identity in rapidly growing international markets."
Khaldoon Al Mubarak, Chief Executive Officer of Mubadala, said: "The hospitality sector is an important evolution in our portfolio of strategic interests. As with every sector in which we work, our aim is to identify the right partner with the right performance track record, strategic outlook and execution capabilities. MGM MIRAGE's record speaks for itself. We are excited by the potential opportunities that the relationship between our two organisations can create."
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