Brookfield Property To Buy GGP In $9.25 Bln Deal

(RTTNews) - Brookfield Property Partners L.P. (BPY, BPY.UN) announced late Monday that it has entered into a definitive agreement to acquire all shares of GGP Inc. (GGP) other than those shares currently held by BPY and its affiliates. The aggregate cash consideration of the deal is $9.25 billion.

In the transaction, GGP shareholders will be entitled to elect to receive, for each GGP common share, either $23.50 in cash or either one BPY unit or one share of a new BPY U.S. REIT security, subject to proration based on aggregate cash consideration.

BPY's earlier takeover offer announced on November 13, 2017 was for cash consideration of $23 per GGP share, for an aggregate cash consideration of $7.4 billion. The company also revised the exchange ratio to 1.0000 from 0.9656.

Following completion of the transaction, GGP shareholders will own approximately 26% of the combined company, calculated based on all BPR shares having been exchanged for BPY units and pro forma for the proposed BAM preferred share conversion.

The cash portion of the consideration will be funded by a combination of approximately $4 billion from joint venture equity partners, and financings from a syndicate of lenders.

GGP shareholders will receive a second quarter dividend of up to $0.22 per share.