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MGM Resorts International is to purchase 10 million shares of its common stock from Tracinda Corporation at $36.24 per share for a total of $362.4m.

The rate represents a 1.5 per cent discount on the market closing price on March 9. The deal will leave Tracinda with approximately 27.2 million shares, or 4.8 per cent, of the company’s outstanding common stock.

“With our larger scale development projects soon coming to completion, today’s announcement underscores our confidence in the company’s meaningful cash flow trajectory and commitment to a balanced capital allocation strategy,” said Jim Murren, chairman and CEO of MGM Resorts in statement.

“This strategy includes prudently investing in attractive growth opportunities and returning excess capital to shareholders while maintaining a strong credit profile, which we believe will maximise shareholder value.”

The repurchase will take place on March 15. As of March 8, there were approximately 566.7 million shares of the company’s common stock outstanding.