Business & Investment

Brookfield offers to keep Brookfield property private for $ 5.9 billion

People pass through the Brookfield Place Pavilion at the World Trade Center West Concourse Pedestrian Transit Connection in New York City.

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Brookfield Asset Management Said on Monday it offered to take its commercial real estate sector Brookfield Property Partners Private with a $ 5.9 billion transaction.

A Canadian asset manager offers $ 16.50 per Brookfield property share that it does not yet own.

“Privatization gives us great flexibility in managing our portfolio and realizing the intrinsic value of BPY’s high-quality assets,” said Nick Goodman, CFO of Brookfield Asset Management, in a statement. “.

Brookfield Properties has approximately $ 88 billion in assets, including office buildings, malls, self-storage facilities, and logistics hubs.Due to the influence of COVID pandemic, Many values ​​of that property are down. Retail stores and office spaces are considered a particularly dangerous bet as vacancies increase and more people are adapting to shopping and working from home.

In Nasdaq, the share of Brookfield Property has decreased by about 20% from a year ago. Brookfield Asset Management’s share price remained unchanged, but Monday’s pre-market trading saw it soar by more than 15%.

In another press release, Brookfield Property said the board had set up an independent committee to review the proposal.

$ 16.50 per unit represents a premium of 14.9% and 14.0% on the closing prices of Brookfield Properties shares on the Toronto Stock Exchange and Nasdaq from December 31, respectively. Each shareholder can choose to receive $ 16.50 in cash. According to Brookfield Asset Management, Brookfield Property Units, 0.40 Brookfield Class A shares, or 0.66 Brookfield Property Priority Units have a clearing priority of $ 25 per unit.

Brookfield Asset Management, which manages approximately $ 575 billion in assets, said it has not offered to acquire other securities of Brookfield Property and its subsidiaries. They are expected to remain unresolved.

Brookfield offers to keep Brookfield property private for $ 5.9 billion Brookfield offers to keep Brookfield property private for $ 5.9 billion

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