Morgans Announces $50mil Stock Repurchase Program
NEW YORK, NY, December 8, 2006. Morgans Hotel Group Co. (Nasdaq: MHGC) ("MHG") today announced that its Board of Directors has authorized the repurchase of up to $50 million worth of MHG common stock, or approximately 10% percent of its outstanding shares based on the current market price.
"We are pleased to announce the first stock repurchase program in the Company's history," said Ed Scheetz, President and Chief Executive Officer. "Our balance sheet and existing capital resources, including capacity under our revolving credit facility and significant cash flow, give us the financial flexibility to implement a share buyback. Today's announcement reflects our Board of Directors' confidence in Morgan Hotel Group's strategy and the significant opportunity to enhance shareholder value by repurchasing some of our stock based on market conditions."
Stock repurchases under this program will be made through the open market or in privately negotiated transactions from time to time. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The stock repurchase program may be suspended or terminated at any time without prior notice, and will expire on December 7, 2007.
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