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Morgans Hotel Group shareholders OK purchase by SBE
Nazarian's acquisition is valued at $800M
Shareholders voted to approve SBE Entertainment Group’s acquisition of Morgans Hotel Group on Wednesday, in a deal valued at about $800 million.
Sam Nazarian’s SBE, a Los Angeles-based hospitality group will acquire Morgans’ [TRDataCustom] 20-hotel portfolio, which includes the Hudson Hotel on Columbus Circle, and is set to close on the deal later this year, the Wall Street Journal reported.
In May, SBE reached a deal to buy Morgans for $2.25 per share, but one shareholder subsequently sued to block it. Another failed deal, in 2015, would have merged the two companies with SBE taking two of the companies hotels.
SBE was reportedly partnering with Ron Burkle, a billionaire shareholder and the co-founder of private equity firm Yucaipa Companies, to acquire Morgans, according to the New York Post. Burkle was not mentioned in the release and a spokesperson for SBE was not immediately available for comment.
The company also received a rival offer of $2.75 per share from an unnamed bidder, the Post reported.
In its May issue, The Real Deal went behind the scenes to trace the origins of the company’s woes. [WSJ] — Chava Gourarie