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Madison Square Garden Entertainment (MSGE) has reached an agreement to sell its stake in the Tao Group chain of restaurants and nightclubs to global luxury lifestyle company Mohari Hospitality, according to a filing Monday (April 17).
MSGE will sell its 66.9 percent majority stake in Tao Group Hospitality for about $300 million, according to filings. The deal, which values ​​Tao Group at $550 million, is expected to close in May.
News of the planned sale comes days before MSGE’s expected sale complete spin-off part of its live entertainment business, a move that will separate the pure-play live music business from the company’s state-of-the-art Sphere venue in Las Vegas, sports television network and hotel operations.
The spin-off will rebrand Tao Group Hospitality to Sphere Entertainment Co. along with Sphere, a new venue in Las Vegas currently under construction and MSG Networks. Once the deal closes, the company said Monday it will “enter into a multi-year agreement with Tao Group Hospitality for ongoing consulting, marketing and support services for Madison Square Garden and Sphere in Las Vegas.”
MSGE acquired a majority stake in Tao Group in 2017 and has since expanded it to include Hakkasan, Beauty & Essex and other restaurants with more than 80 locations in 24 cities on four continents.
Founded in 2017, Mohari Hospitality is an investment company that owns stakes in the Waldorf Astoria Miami, First Hotel Toronto, Peninsula Papagayo, a sustainable luxury resort in Costa Rica, and the Ritz-Carlton Custom Yachts cruise line.
The equity holders of Tao Group Hospitality were advised by Goldman Sachs & Co. and Hughes Hubbard & Reed. Mohari Hospitality was advised by Moelis & Company and Kirkland & Ellis.
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