MSGE - MSG Entertainment confirms $550M deal to sell hospitality arm Tao Group

2023-04-17 17:17:31 ET

• Madison Square Garden Entertainment ( NYSE: MSGE ) has confirmed it's agreed to sell its Tao Group Hospitality unit to Mohari Hospitality for $550M.
• Mohari takes over MSG Entertainment's 66.9% interest in Tao Group in a deal expected to close in May. The transaction isn't conditioned on the receipt of financing.
• MSGE expects to receive net cash in the deal of about $300M.
• With the closing, MSGE plans to enter multi-year agreements with Tao Group for consulting, marketing and support services at Madison Square Garden and the Sphere in Las Vegas.
• MSGE stock dipped 1.2% Monday.
• Mohari will own Tao Group along with management, including co-CEOs Noah Tepperberg and Jason Strauss, the company said .
• "Tao Group has grown from an innovator in nightlife to a leader in premium lifestyle and hospitality," said Mohari Managing Partner J. Allen Smith. "Its global footprint of more than 80 branded locations in over 20 markets and best-in-class management infrastructure speaks to the Group's tremendous potential."

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