In what was not an unexpected move, Simon Properties Group (NYSE:SPG) has offered to buy General Growth Properties (OTC:GGWPQ) for $10 billion.
Simon Property Group, Inc. announced that it has made a written offer to acquire General Growth Properties, Inc. in a fully financed transaction valued at more than $10 billion, including approximately $9 billion in cash.
Simon’s offer would provide a 100% cash recovery of par value plus accrued interest and dividends to all General Growth unsecured creditors, the holders of its trust preferred securities, the lenders under its credit facility, the holders of its Exchangeable Senior Notes and the holders of Rouse bonds, immediately upon the effectiveness of a definitive transaction agreement.
This consideration to creditors totals approximately $7 billion. General Growth shareholders would receive more than $9.00 per General Growth share, consisting of $6.00 per share in cash and a distribution of General Growth’s ownership interest in the Master Planned Community assets valued by General Growth at more than $3.00 per share.
Simon is also prepared to offer Simon common equity instead of the cash consideration, in whole or in part, as payment to those General Growth shareholders or creditors who would prefer to participate in the upside of owning stock in Simon. Under Simon’s offer, the existing secured debt on General Growth’s portfolio of assets would remain in place.– Reuters
Simon Properties, who owns more than 300 mall properties, is currently the largest owner of this type in the country. Number two on the list is General Growth, with more than 200 mall properties.
Reportedly, GGP is also in talks with Canada-based Brookfield Properties. After buying nearly $1 billion of GGP unsecured debt, Brookfield is taking a bit different approach.
Rather than launching an outright takeover bid, it appears Brookfield has offered some sort of capital infusion to GGP, which would allow GGP to remain an independent company, but with Brookfield as one of their largest shareholders.
[Wall Street Journal]
Simon Offers $10 Billion for GGP
In what was not an unexpected move, Simon Properties Group (NYSE:SPG) has offered to buy General Growth Properties (OTC:GGWPQ) for $10 billion.
Simon Properties, who owns more than 300 mall properties, is currently the largest owner of this type in the country. Number two on the list is General Growth, with more than 200 mall properties.
Reportedly, GGP is also in talks with Canada-based Brookfield Properties. After buying nearly $1 billion of GGP unsecured debt, Brookfield is taking a bit different approach.
Rather than launching an outright takeover bid, it appears Brookfield has offered some sort of capital infusion to GGP, which would allow GGP to remain an independent company, but with Brookfield as one of their largest shareholders.
[Wall Street Journal]