MGM Resorts International (NYSE:MGM) stock surged 15% on Monday after People Incorporated, formerly IAC Inc. (NASDAQ:IAC), proposed acquiring the casino operator’s remaining outstanding shares for $48.30 apiece in cash, a bid that would take MGM private and values the offer at a significant premium to recent trading levels.

The non-binding proposal values MGM shares at a 24.1% premium to their 30-day volume-weighted average price through May 29, more than a 30% premium to the 90-day average price and a 10.6% premium to the stock’s most recent closing price. People Inc. already owns 26.1% of MGM’s outstanding common stock.

Diller Says MGM Is Undervalued

“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,” said Barry Diller, chairman and senior executive of People Inc.

Diller said the company believes public markets continue to undervalue MGM’s assets and growth potential. He added that the proposal would give shareholders an opportunity to “de-risk their investment and realize immediate, attractive value in cash for their shares.”

Financing Plan Outlined

People Inc. said it expects to finance the transaction using a combination of cash on hand at both companies ...