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GGP to be Acquired by Brookfield Property for $14.8 Billion
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Amid increasing speculations, Brookfield Property Partners made an acquisition offer to GGP Inc. , according to a report by the Wall Street Journal.
The report, which cited a person familiar with the matter, revealed that Brookfield is set to shell out $14.8 billion for the purchase of GGP’s shares that are currently not under its ownership.
Citing other people, the report noted that Brookfield will pay $23 per share to acquire the remaining 66% stake in GGP. This will increase Brookfield’s ownership stake in the shopping mall investor and help take the company private.
The transaction will be made partly in cash and partly in equity. GGP investors could opt for cash payment or an equivalent of 0.9656 limited partnership units of Brookfield Property. However, this proration is subject to the condition that the cash consideration and value of units exceed 7.4 billion each.
Brookfield currently owns 34% stake in the Chicago-domiciled company which is currently valued at around $21 billion.
Share price of GGP Inc. has spiked amid heightening buyout speculations. In fact, shares of the retail real estate investment trust (REIT) ascended more than 16% to $22.10 on Nov 7. (Read more: GGP Investors Rejoice as Buyout Speculations Hit Headlines)
As details regarding the deal unfolded on Friday, the company’s shares further inched up 0.9% to $22.2 during Friday’s regular trading session. Amid the dull retail real estate market, this rally offers respite to investors.
Of late, mall traffic has been severely affected and retail landlords, including GGP Inc., Regency Centers Corporation (REG - Free Report) and Taubman Centers, Inc. , have felt the heat due to consumers’ preferences inclining more and more toward online retail. This has resulted in widespread store closures and bankruptcy filing by store owners.
Shares of GGP Inc. have underperformed the industry it belongs to, year to date. The company’s shares have lost 11.1% as against the industry’s growth of 11.4%.
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GGP to be Acquired by Brookfield Property for $14.8 Billion
Amid increasing speculations, Brookfield Property Partners made an acquisition offer to GGP Inc. , according to a report by the Wall Street Journal.
The report, which cited a person familiar with the matter, revealed that Brookfield is set to shell out $14.8 billion for the purchase of GGP’s shares that are currently not under its ownership.
Citing other people, the report noted that Brookfield will pay $23 per share to acquire the remaining 66% stake in GGP. This will increase Brookfield’s ownership stake in the shopping mall investor and help take the company private.
The transaction will be made partly in cash and partly in equity. GGP investors could opt for cash payment or an equivalent of 0.9656 limited partnership units of Brookfield Property. However, this proration is subject to the condition that the cash consideration and value of units exceed 7.4 billion each.
Brookfield currently owns 34% stake in the Chicago-domiciled company which is currently valued at around $21 billion.
Share price of GGP Inc. has spiked amid heightening buyout speculations. In fact, shares of the retail real estate investment trust (REIT) ascended more than 16% to $22.10 on Nov 7. (Read more: GGP Investors Rejoice as Buyout Speculations Hit Headlines)
As details regarding the deal unfolded on Friday, the company’s shares further inched up 0.9% to $22.2 during Friday’s regular trading session. Amid the dull retail real estate market, this rally offers respite to investors.
Of late, mall traffic has been severely affected and retail landlords, including GGP Inc., Regency Centers Corporation (REG - Free Report) and Taubman Centers, Inc. , have felt the heat due to consumers’ preferences inclining more and more toward online retail. This has resulted in widespread store closures and bankruptcy filing by store owners.
Shares of GGP Inc. have underperformed the industry it belongs to, year to date. The company’s shares have lost 11.1% as against the industry’s growth of 11.4%.
GGP Inc. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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