Tue, Mar. 17, 8:27 AM
- Unsurprisingly, the Macerich (NYSE:MAC) board rejects Simon Property's (NYSE:SPG) $91 per share offer for the company, noting it significantly undervalues the company. Macerich also takes serious issue with Simon's claims of superior profitability metrics, and notes the possible antirust concerns raised by Simon's partnership with General Growth Properties (NYSE:GGP) - as part of its proposal, Simon has agreed to sell certain Macerich properties to GGP.
- The poison pill goes into effect should any person or group acquire more than a 10% stake.
- Previously: Simon Property presentation on Macerich: We can do a better job (March 10)
- Previously: $91 per share only the opening gambit for Macerich (March 9)
- MAC -0.25% premarket
Mon, Mar. 9, 2:44 PM
- "We think $91 is just an opening bid/salvo in what could be a long takeover battle," writes Stifel's Nathan Isbee. "Macerich (MAC +6.4%) could hold out for at least a high $90s bid."
- Simon Property's (SPG +0.1%) $91 bid translates into a 4.8% cap rate, estimates BMO's Paul Adornato. Assuming Simon could afford a 4.5% cap rate, it would work out to $99 per share, or $115 at a 4% cap rate. Too pricey? Top-quality malls are going for even higher valuations, such as General Growth Properties' JV deal for the Ala Moana Center in Honolulu at about a 3-cap.
- Macerich will no doubt look for other suitors, perhaps even General Growth Properties (GGP +1.7%), even though Simon Property already made GGP essentially its partner in the offer by agreeing to sell some Macerich assets to the company. Private-equity firms have also been known to have interest in REITs.
- Macerich is currently trading at $92.25 as investors bet a deal will get done, but at something north of $91.
- Previously: Macerich confirms receipt of Simon offer, reminds of track record and plan (March 9)
- Previously: Simon Property makes its move on Macerich (March 9)
Mon, Mar. 9, 9:12 AM
- The proposed offer is for $91 per share in cash and stock, valuing the total deal at about $22.4B, including the assumption of Macerich's (NYSE:MAC) $6.4B of debt. Macerich owners would receive consideration in the form of 50% cash and 50% Simon Property Group (NYSE:SPG) stock.
- Making its case (so far Macerich hasn't been interested in engaging with Simon), SPG notes the offer is a 30% premium to MAC's price in November before Simon disclosed a 3.6% stake in the company. It's also a 28% premium to the price paid by the Ontario Teachers' Pension Plan for a 10.9% stake that same month.
- Alongside this proposal, Simon has agreed with General Growth Properties (NYSE:GGP) to sell certain Macerich assets to that company once the acquisition closes.
- Source: Press Release and letter to Macerich
- MAC +5.9% to $91.85 premarket; SPG +0.8%
- Previously: Simon Property courts Macerich (March 5)
Feb. 11, 2014, 4:02 AM
- General Growth Properties (GGP) has repurchased all of Pershing Square's 28M shares in the company for $556M.
- General Growth Properties bought the stock for $20.12 each vs its close yesterday of $20.83.
- The deal comes after Bill Ackman's hedge fund sold 25M shares in the shopping-mall owner in September for $500M.
- Ackman helped rescue General Growth in 2009 by persuading it to file for bankruptcy and then taking part in its subsequent restructure.
- The investment has been one of Ackman's most profitable. In 2011, he told Bloomberg that it "turned $60M into $1.6B." (PR)
Aug. 24, 2012, 6:49 AMBrookfield (BAM), which is General Growth Properties' (GGP) largest shareholder, said late yesterday it has no interest in selling its 40% holding, or in buying the mall operator outright. Brookfield's comments came after Bill Ackman's Pershing called on the firm to put itself up for sale. | Aug. 24, 2012, 6:49 AM | 2 Comments
Oct. 14, 2011, 9:50 AMShopping mall REIT General Growth Properties (GGP +1.6%) gains after announcing it's sold three assets, including Boston's Faneuil Hall Marketplace, for $280M. The moves will allow General Growth to slightly pare down the $16.9B in long-term debt it had on its balance sheet at the end of September. | Oct. 14, 2011, 9:50 AM | 1 Comment
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