US-based mall owner General Growth Properties (GGP) has revealed that it received a takeover bid from Brookfield Property Partners, the landholdings arm of Toronto’s Brookfield Asset Management, with the Canadian firm looking to expand its footprint in the real estate market.
The bid, totalling $14.8bn, is an attempt from Brookfield to acquire the entirety of GGP, a firm that it currently holds a 34% stake in.
“The Board has formed a special committee of its non-executive, independent directors which, in consultation with its financial and legal advisors, will carefully review and consider the Proposal and pursue the course of action that it believes is in the best interests of the Company’s stockholders,” GGP said in a statement.
The $14.8bn offer equates to $23 per share. This had represented a 21% premium on GGP’s original stock price, however, this has since narrowed to just 3.6%, with GGP’s stock having surged after Bloomfield reported that Brookfield was in preliminary talks with the mall owner.
GGP currently owns approximately 127 properties, mostly across the US, with its clients including automaker Tesla, jeweller Tiffany and retailer Macy’s.
The offer is part-cash, part-stock, and, if accepted, will see Brookfield acquiring the remaining 66% stake in GGP.