The Madison Square Garden Company (MSG) has revealed that its board of directors has approved a revised plan for the proposed separation of its sports and entertainment businesses, while its planned MSG Sphere arena in London is expected to open later than initially planned.
MSG is pursuing a spin-off of its entertainment businesses into a separately traded public company and the proposed transaction is expected to be completed during the first quarter of 2020, subject to certain conditions.
MSG had previously been exploring plans to spin off around two thirds of its economic interest in its sports businesses to shareholders, with the entertainment company to retain an approximate one-third interest in the sports company. Under the revised plan, the transaction would be structured as a tax-free pro rata spin-off to all MSG shareholders, through with each shareholder would continue to own their current economic interest in both the sports and entertainment businesses.
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