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Brookfield Property launches GGP takeover bid
Posted on Tuesday, 14 November 2017 06:51
Bermuda-incorporated Brookfield Property Partners is making an unsolicited bid for the remaining 66.0 per cent of shopping centre and industrial real estate investment trust GGP, in a deal valued at USD 14.80 billion.
The offer of USD 23.00 per share represents a premium of 3.6 per cent compared to the closing price of USD 22.20 on 10th November 2017, the last trading day prior to the announcement.
However, shareholders have the choice to receive 0.97 Brookfield Property limited partnership units in lieu of cash.
Both options are subject to proration capped at 50.0 per cent of the total equity value: USD 7.40 billion in cash or 309.00 million units.
The transaction is subject to customary conditions, including the approval of GGP stockholders, who have been advised not to take any action until a decision has been reached by the newly-formed special committee.
Listed on the New York Stock Exchange since 2010, the target had a market capitalisation of USD 19.58 billion on 10th November 2017.
Chief executive of Brookfield Property Group, Brian Kingston, said that the purchase will create a company that “will be able to grow faster and create more value than either could on a stand-alone basis.”
The acquiror, which is owned by Canadian investment giant Brookfield Asset Management, is one of the world’s largest commercial real estate companies, with approximately USD 68.00 billion in total assets.
It employs more than 70,000 people in over 30 countries.
For the three months ending 30th September 2017, Brookfield Property posted net income of USD 659.00 million, down from the USD 1.62 billion recorded for the same period last year.
The higher results in 2016 were due to profits made from sales, including a portfolio of German hotel assets and One Shelley Street in Sydney, and buying the rest of Rouse Properties.
© Zephus Ltd