Brookfield offers to buy GGP stake for more than $14B

Wednesday, 15 November 2017, 06:33:22 AM. Brookfield Property Partners offering $14 billion to buy the remaining shares of mall owner GGP that it doesn’t already own.
Brookfield Property Partners LP bid about $14.8 billion to acquire the stake it doesn't already hold in U.S. mall owner GGP Inc. as the companies seek to repurpose struggling bricks-and-mortar shopping centers. The firm offered $23 a share for the 66 percent of GGP it doesn't own, Brookfield said in a statement on Monday. That represents a premium of about 21 percent to Chicago-based GGP's closing price on Nov. 6, the day before Bloomberg News reported Brookfield had held discussions about taking the company private. GGP said in a separate statement that its board has formed a special committee to review the proposal. Brookfield Property Partners is the real estate unit of Toronto-based Brookfield Asset Management Inc. Brookfield Asset has been focusing on buying and revamping shopping centers to take advantage of the land they occupy in urban areas, Chief Executive Officer Bruce Flatt said on a conference call last week. GGP last month reached an agreement with AvalonBay Communities Inc. to build apartments at a shopping center in Seattle, and CEO said the company "will look to explore similar projects at other locations." In the third quarter, Brookfield Property exercised all of its outstanding warrants in GGP, bringing its ownership stake to 34 percent from 29 percent, the company said in a statement earlier this month. The 68 million shares were purchased for $462 million. "Although there could be other bidders, we do believe Brookfield is the logical buyer for GGP given...Read more
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