Brookfield Asset Management Inc.’s (NYSE:BAM) friendly all-cash takeover offer for Australia-based diversified property company Multiplex Group is expected to be financed primarily via debt, but Michael Goldberg at Desjardins Securities thinks the financing will also include some common equity.
The offer, which includes a A$20-million break fee, values Multiplex at approximately A$7.3-billion on an enterprise value basis, Brookfield said in a statement.
“The fee may be small because the parties to the deal believe that there is a high probability that it will be completed,” Mr. Goldberg told clients in a note.
The deal expands Brookfield’s property and asset management operations, while the makeup of Multplex’s property portfolio and its related fund management business appear to compliment Brookfield, he added.
Mr. Goldberg’s “buy” rating and C$43 price target for Brookfield shares are currently under review.