Brookfield Property Partners Proposes To Buy Brookfield Canada Office

(RTTNews) - Brookfield Property Partners L.P. (BPY, BPY_UN.TO) said that it has made a proposal to Brookfield Canada Office Properties (BOXC, BOX_UN.TO) to acquire the approximately 16.9% equity interest in BOX that it or its affiliates do not own (about 15.8 million units) for C$30.10 cash per unit.

The proposed price represents a premium of 14.2% to the 30-day volume-weighted average price of BOX units on the Toronto Stock Exchange and 14.5% to the 30-day volume-weighted average price of BOX units on the New York Stock Exchange. The price also represents a premium of 14.8% and 14.5%, respectively, to the closing price of BOX units on January 20, 2017.

The company noted that Unitholders holding approximately 3.65 million units of BOX, representing approximately 23% of the unaffiliated BOX units, including Morgan Stanley Investment Management, who holds approximately 1.5 million units of BOX on behalf of certain client accounts, support the proposal and have agreed, subject to certain conditions, to vote the units of BOX they still hold at the time an agreement is entered into in favor of the transaction.

Brookfield Property Partners said it has presented its proposal to the Board of Trustees of BOX and has asked the Board to begin a process to review the proposal and appoint a special committee of independent trustees to commission an independent valuation of BOX's units.

Once the valuation is available, Brookfield Property Partners would seek to enter into a definitive agreement with BOX with respect to the proposed transaction for presentation to unitholders.