March 26, 2018 / 10:18 PM / 7 months ago

BRIEF-Brookfield And GGP Reach Agreement On BPY’S Acquisition Of GGP

March 26 (Reuters) - Brookfield Property Partners LP :

* BROOKFIELD AND GGP REACH AGREEMENT ON BPY’S ACQUISITION OF GGP

* AGGREGATE CASH CONSIDERATION OF $9.25 BILLION​

* TRANSACTION EXPECTED TO BE IMMEDIATELY ACCRETIVE TO FFO/UNIT FOR BPY UNITHOLDERS

* TRANSACTION INCLUDES A $1.85 BILLION INCREASE IN CASH CONSIDERATION, FROM $7.4 BILLION TO $9.25 BILLION

* ‍GGP SHAREHOLDERS WILL BE ENTITLED TO GET EITHER $23.50 IN CASH FOR EACH SHARE OR EITHER ONE BPY UNIT OR ONE SHARE OF A NEW BPY U.S. REIT SECURITY​

* ‍INCREASE IN CASH CONSIDERATION FROM $23.00 TO $23.50 PER GGP SHARE​

* ‍INCREASE IN EXCHANGE RATIO FROM 0.9656 TO 1.0000​

* CREATION OF A NEW BPY U.S. REIT THAT WILL QUALIFY AS A REIT FOR TAX PURPOSES AND ISSUE SHARES IN TRANSACTION​

* CASH PORTION OF DEAL TO BE FUNDED WITH ABOUT $4 BILLION FROM JV EQUITY PARTNERS, & FINANCINGS FROM SYNDICATE OF LENDERS

* DEAL INCLUDES CREATION OF A NEW BPY U.S. REIT THAT WILL QUALIFY AS A REIT FOR TAX PURPOSES, ISSUE SHARES IN DEAL

* ‍CONSIDERATION IN DEAL WILL BE STRUCTURED AS A DIVIDEND BY GGP PAID IN CASH AND EQUITY AND MERGER CONSIDERATION PAID IN CASH​

* ‍BAM HAS INTENTION TO CONVERT ITS $500 MILLION BPY CLASS C JUNIOR PREFERRED SHARES INTO BPY UNITS AT $23.50 PER UNIT​

* ‍GGP SHAREHOLDERS WILL RECEIVE A Q2 DIVIDEND OF UP TO $0.22 PER SHARE​

* SPECIAL COMMITTEE, COMPRISED OF NON-EXECUTIVE, INDEPENDENT DIRECTORS, UNANIMOUSLY RECOMMENDED GGP SHAREHOLDERS APPROVE DEAL Source text for Eikon: Further company coverage:

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