Published 10 May 2010
Simon Property Group issued a revised “best & final” offer for General Growth Properties on Thursday, then withdrew it on Friday after the General Growth board preferred Brookfield Asset Management’s offer and got permission for an auction process.
Simon said its $US6.5 billion offer, at $US20/share, represented a 66% ($US2.6 billion) premium over Brookfield’s offer. It was made up of $US5 cash, $US10 in Simon shares & shares in General Growth Opportunities valued at $US5/share. Brookfield’s offer is more complicated, including warrants from the different parties in the bidding consortium.
General Growth said later on Friday the US Bankruptcy Court had approved bidding procedures and the issuing of warrants to serve as compensation for the financial commitments to be provided pursuant to the revised $US6.55 billion equity investment & $US2 billion capital backstop offer from affiliates of Brookfield Asset Management, Pershing Square Capital Management & Fairholme Funds.
General Growth said it would continue to consider competitive proposals and expected to select its plan for emergence from bankruptcy in early July.
General Growth, the second-biggest US-owned mall owner, filed for chapter 11 bankruptcy protection in April 2009 for itself and for 166 subsidiaries – most of the individual mall-owning companies in the group, including The Rouse Co and the Howard Hughes Corp. It currently has ownership interest in or management responsibility for more than 200 regional shopping malls in 43 states, as well as ownership in planned community developments & commercial office buildings.
19 February 2010: General Growth tells Simon to get in line
17 February 2010: Simon bids for bankrupt General Growth
17 April 2009: US mall giant General Growth enters bankruptcy protection
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Attribution: General Growth releases, story written by Bob Dey for the Bob Dey Property Report.