Mills, therefore, has terminated its $7.5-billion agreement with Brookfield Asset Management, ending what has been a multifaceted bidding war for the beleaguered company. Earlier this week, Mills reported it would pursue the Simon/Farallon $24-per-share offer as it was a "Superior Competing Transaction," after Brookfield had beat out a number of competing offers, as reported by GlobeSt.com.
"SPG and Farallon are smart investors who recognized the high quality and potential of the Mills' properties and have the resources to upgrade our properties and to continue to attract premium tenants to the Mills assets," says Mills CEO and president Mark Ordan, in a statement.
SPG has provided Mills with debt financing that replaces Mills' senior term loan and revolving line of credit from Brookfield. David Simon heads SPG from the company's Indiana HQ.
Farallon currently owns more than 10.8% of Mills' outstanding common shares. SPG has obtained an option to acquire approximately 4.9% of its common shares from Stark Master Fund Ltd.
The transaction was unanimously approved by Mills' board of directors. The tender offer is expected to close in approximately 45 days.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
