- Brookfield Asset Management (BAM) has announced an agreement signed with Brookfield Property Partners (BPY) to acquire 100 per cent of BPY units for C$18.17 per unit
- Assuming all applicable conditions are met, the arrangement is expected to close in the third quarter of 2021
- Brookfield Asset Management owns and manages commercial property, power, and infrastructure assets
- Brookfield Property Partners (BPY) is down 0.58 per cent and is currently trading at C$22.22 per share
- Brookfield Asset Management (BAM) is up 0.45 per cent and is currently trading at C$56.15 per share
Brookfield Asset Management (BAM) has announced an agreement with Brookfield Property Partners (BPY).
The agreement is to acquire 100 per cent of BPY units for C$18.17 per unit.
The BPY board has approved the transaction and recommends that unitholders of BPY do the same.
Lazard Frères & Co., an independent financial adviser to the special committee, has provided an opinion that the fair market value of a BPY unit was in the range of C$14.00 to C$18.50, implying a total value of C$67.6 to C$72.1 billion.
Lazard also determined that the consideration being offered to public unitholders under the arrangement was fair from a financial point of view.
Nick Goodman, CFO of Brookfield Asset Management, stated,
“We are pleased to have reached agreement with BPY’s independent directors on a transaction we believe is appealing to BPY unitholders in many aspects.”
“Not only can unitholders choose to receive a meaningful portion of their consideration in cash at a significant premium, but they will also have the option to remain invested in the future upside of our real estate business and alternative asset management franchise,” he continued.
Subject to pro-ration, BPY unitholders will have the ability to elect to receive, per BPY unit, C$18.17 in cash, 0.3979 of a Brookfield class A limited voting share, or 0.7268 of a BPY preferred unit with a liquidation preference of C$25.00 per unit.
The arrangement and related transactions are subject to approval by a majority of the public unitholders of BPY, in addition to other customary closing conditions including the approval of the Ontario Superior Court of Justice.
Assuming these conditions are met, the arrangement is expected to close in the third quarter of 2021.
Brookfield Asset Management owns and manages commercial property, power, and infrastructure assets.
Brookfield Property Partners owns, operates, and invests in commercial properties in North America, Europe, Australia, and Brazil.
Brookfield Property Partners (BPY) is down 0.58 per cent and is currently trading at C$22.22 per share as of 3:49 pm ET.
Brookfield Asset Management (BAM) is up 0.45 per cent and is currently trading at C$56.15 per share as of 3:46 pm ET.
