- Brookfield Asset Management (NYSE:BAM) reaches an agreement with Brookfield Property Partners (NASDAQ:BPY) to acquire all of the limited partnership units of BPY that it doesn't already own for $18.17 per unit, representing a total consideration of $6.5B.
- Each BPY unitholder can choose $18.17 in cash, 0.3979 of a BAM class A share, or 0.7268 of a BPY preferred unit, per BPY share, subject to pro-ration.
- BPY shares rise 1.2% in premarket trading to $18.00.
- The offer represents an increase of 10%, including the appreciation of BAM class A shares, over the non-binding proposal made by BAM on Jan. 4, 2021, a 26% premium to BPY's unit price on Dec. 31, 2020 and a 6% premium to the volume-weighted average price of BPY units on the Nasdaq since the announcement was made on Jan. 4.
- Aggregate consideration mix will be ~50% cash, 42% BAM class A shares, and 8% BPY preferred units.
- After the approval of the of agreement and related transactions by BPY unitholders, it's expected that BPYU 6.375% series A cumulative redeemable preferred stock (NASDAQ:BPYUP) will be redeemed at its par value of $25 per share plus any accrued and unpaid dividends.