Simon Bids $4.7B for U.K. Mall Owner
LONDON (
) --
Simon Property
(SPG) - Get Report
has proposed to buy
Capital Shopping Centres
, a U.K. mall owner, for 426 pence a share ($6.68) in cash, or 3 billion pounds ($4.71 billion).
In a letter to Capital Shopping's board, Simon Property Chairman and CEO David Simon said the offer is a 26% premium to Capital Shopping's closing price of 337 pence on Nov. 24.
Simon Property owns about 5% of Capital Shopping. Simon Property's bid is conditioned, among other things, on Capital Shopping not going through with its deal to buy Trafford Centre mall, a transaction Simon Property has opposed in the past.
"Our interest in making an offer for CSC is, of course, not new. By making this offer on the terms outlined in this letter, we are confident that we have now answered any objections you have previously expressed," the CEO wrote in his letter. "We believe that we should work together to announce a recommended offer, and would urge you to listen to calls from your shareholders -- many of whom we have spoken to -- opposing the Trafford Centre transaction or asking you to adjourn your forthcoming EGM."
Simon Property is finalizing a bridge loan of about 3 billion pounds to finance the transaction.
-- Written by Joseph Woelfel
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Joseph Woelfel
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