Simon Property Proposes To Acquire Macerich In $22.4 Bln Cash, Stock Deal

(RTTNews) - Simon Property Group, Inc. (SPG) said it has sent a letter to The Macerich Co. (MAC) confirming its prior discussions regarding Simon's proposal to acquire all of the outstanding stock of Macerich for $91.00 per share in cash and Simon shares.

The total value of the proposed transaction is about $22.4 billion, including the assumption of Macerich's about $6.4 billion of debt outstanding. Macerich shareholders would receive consideration in the form of 50 percent cash and 50 percent Simon common stock, utilizing a fixed exchange ratio.

The offer represents a 30 percent premium to Macerich's unaffected closing stock price of $69.88 on November 18, 2014, the day before Simon disclosed its 3.6 percent investment in Macerich. Simon's Board of Directors has unanimously endorsed the proposal.

Simon also reached an agreement in principle to sell selected Macerich assets to General Growth Properties, Inc. (GGP) in connection with the closing of the acquisition. Neither transaction financing nor the sale of assets to General Growth will be a condition to closing the proposed deal.