Simon Property Group, Inc. (NYSE:SPG) said Monday it plans to purchase an 80% ownership interest in Taubman Centers, Inc. TCO-owned Taubman Realty Group for $52.50 per share in cash.
Simon expects to fund the total required cash consideration of approximately $3.6 billion with existing liquidity.
The Bloomfield Hills, Michigan-based Taubman Realty Group manages and leases 26 regional shopping centers in the U.S. and Asia. They'll continue to be managed by the existing team lead by Robert Taubman, the company's chairman, president and CEO, according to the Monday press release.
"We are very pleased to announce this transaction, which will be immediately accretive to Simon's FFO," Simon CEO David Simon said in a statement.
"By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities. I look forward to partnering with Bobby and the TRG executive team in this exciting new joint venture."
The deal is expected to close in mid-2020, the companies said.
Over the weekend, Simon Property announced it would be teaming up with Brookfield Property Partners and privately held Authentic Brands Group in an attempt to buy apparel retailer Forever 21 out of bankruptcy for $81 million
Simon shares settled 46 cents at the outset Monday to $140.56
Related Stories
