SBE Entertainment Group acquires Morgans Hotel Group for $82 Million
SBE Entertainment Group, which owns the SLS Hotels brand, has announced that it has acquired New York-based Morgans Hotel Group Co. for $82 million.
The Sam Nazarian's privately owned company paid $2.25 per share in cash for the outstanding shares of Morgans Hotel Group.Nazarian will take care of day-to-day management of the firm working as the Chief Executive Officer of the combined company. The deal to acquire the company includes the purchase of all of Morgans' brands and three properties including The Delano South Beach, Hudson Hotel in New York, and the Clift Hotel in San Francisco.
The combined entity will have 20 hotels and will be worth an estimated $794 million. The company officials indicated that the acquisition is expected to close during the third or fourth quarter of this year after getting regulatory and shareholder approvals. Under the agreement, the shareholders of Morgansrepresenting 29 percent of the company's outstanding shares of common stock have already signed voting agreements supporting the deal.
The companies were close to singing the deal in the month of November 2015 but the merger plans had to be scrapped as two Morgans Hotel Group board members had a disagreement over the deal.
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