US hotel and gaming resort operator, MGM Mirage is to acquire London-Based casino and dog-track operator, Wembley, in a cash deal worth £270m.

The acquisition gives MGM Mirage access to Wembley’s five UK greyhound racing stadiums and consequently the potential to develop track-side gaming resorts to take advantage of the proposed changes to gaming regulation.

Wembley shareholders will receive 750p per share – a premium of 22.4 per cent over the closing price of 612.5p on 26 January – as well as receiving shares in Newco – a company to be formed to separate Wembley’s Lincoln Park site - which is currently the subject of litigation on bribery charges in the US – from the rest of the business.

Newco will have cash balances of $16.3m (£9m) which includes $8m (£4.5m) deposited in an escrow account following agreement with the US Attorney that this would be the maximum aggregate fine sought under the Lincoln Park litigation.

Once the case is resolved, any remaining cash will be distributed to Wembley shareholders, who will receive Newco shares pro rata to their Wembley holding.

“The acquisition of Wembley will complement MGM Mirage’s existing portfolio of assets, particularly in the US,” said J. Terrence Lanni, chair and CEO of MGM Mirage. “We believe Wembley is a business with considerable potential which we intend to accelerate through the use of considerable gaming expertise within MGM Mirage.”

The acquisition is conditional upon the completion of the Lincoln Park Reorganisation, but has been unanimously agreed to by the Wembley directors.