World News: 17:35 GMT Tuesday 3rd December 2019. [The Madison Square Garden Company via Globe Newswire via SPi World News]
NEW YORK, Dec. 03, 2019 (GLOBE NEWSWIRE) -- The Madison Square Garden Company (NYSE: MSG) today announced that it has filed a confidential initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission (“SEC”) for the proposed spin-off of its entertainment business. The filing represents a significant milestone with regard to completing the transaction, which the Company continues to expect will take place in the first quarter of calendar 2020, subject to certain conditions.
As previously announced, the proposed separation of the sports and entertainment business would be structured as a tax-free spin-off to all MSG shareholders. Upon completion of the transaction, record holders of MSG common stock would continue to maintain their current economic interest in both the sports and entertainment businesses.
The proposed spin-off would create two distinct companies for MSG shareholders – a pure-play sports company that would reflect the strong and steady financial performance of MSG’s sports businesses and an entertainment company that would capitalize on opportunities for growth, most notably through venue expansion. The transaction would enable investors to more clearly evaluate each company’s assets and opportunities, while providing both companies with increased strategic flexibility to pursue their own business plan and capital allocation policy. The Dolan family would maintain majority voting control of both the sports and entertainment companies through their ownership of Class B shares.
The pure-play sports company would include:
The entertainment company would feature iconic venues: New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, CA; and The Chicago Theatre. The Company is also currently constructing a state-of-the-art venue, called MSG Sphere, in Las Vegas with the goal of opening in calendar 2021 and plans to build a second MSG Sphere in London.
In addition to this portfolio of world-class venues, the entertainment company would also include:
Completion of the transaction would be subject to various conditions, including league and final MSG Board approval. J.P. Morgan Securities LLC and PJT Partners LP continue to serve as financial advisors and Sullivan & Cromwell LLP continues to serve as legal advisor.
Globe Newswire: 17:35 GMT Tuesday 3rd December 2019
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