High-end Morgans hotel chain dealt to hospitality company SBE for $82 million
Hospitality company SBE Entertainment Group has agreed to acquire Morgans Hotel Group Co., according to people familiar with the matter, ending a long saga in which the two companies have held on-and-off-again merger talks.
SBE is paying $2.25 a share in cash for the outstanding shares of Morgans MHGC, +0.00% , which were recently trading on the Nasdaq market at around $2, though the shares were trading as low as $1.33 last week before jumping on speculation of a takeover.
The deal puts an equity value on the company of about $82 million, these people said. The total enterprise value of the combined company, including assumption of debt, would be about $800 million, say people familiar with these companies’ thinking.