US mall owner's shares jump on reports
It’s being widely reported Wednesday that Brookfield Asset Management is in early talks with GGP about a takeover.
Toronto-based Brookfield already owns 34% of the publicly-listed US real estate firm but a source close to the matter says that a full takeover is being discussed.
Brookfield’s involvement in GGP began in 2010 when the Chicago-headquartered mall owner was in bankruptcy. The stake has increased over the years including an additional $462 million investment last year adding an extra 5% to its holding.
However, in 2013 Brookfield agreed that its stake in GGP would not exceed 45% for the next four years; that time is up.
The early-stage talks have reportedly been based on Brookfield paying a premium of between 10% and 15% above GGP’s share price at the start of the week; at the close Tuesday, shares were up 13% on the rumoured takeover valuing the company at around U$20 billion.
The retail real estate sector has been under pressure from online retailers and the impact of the Great Recession but experts predict increased M&A activity in the sector.
Reports of the talks were posted by industry publication tradethenews.com but Brookfield and GGP have not commented.
Toronto-based Brookfield already owns 34% of the publicly-listed US real estate firm but a source close to the matter says that a full takeover is being discussed.
Brookfield’s involvement in GGP began in 2010 when the Chicago-headquartered mall owner was in bankruptcy. The stake has increased over the years including an additional $462 million investment last year adding an extra 5% to its holding.
However, in 2013 Brookfield agreed that its stake in GGP would not exceed 45% for the next four years; that time is up.
The early-stage talks have reportedly been based on Brookfield paying a premium of between 10% and 15% above GGP’s share price at the start of the week; at the close Tuesday, shares were up 13% on the rumoured takeover valuing the company at around U$20 billion.
The retail real estate sector has been under pressure from online retailers and the impact of the Great Recession but experts predict increased M&A activity in the sector.
Reports of the talks were posted by industry publication tradethenews.com but Brookfield and GGP have not commented.
