By Lisa Kerner
Charlotte, N.C., Feb. 16 - Simon Property Group, Inc. and Farallon Capital Management, LLC will acquire The Mills Corp. for $25.25 per share in a cash tender offer slated to begin before the end of February and close after approximately 45 days.
The total value of the transaction is approximately $1.64 billion, including all outstanding common units of The Mills LP not owned by The Mills, or a total of $7.9 billion including assumed debt and preferred stock.
As result of the agreement, The Mills has terminated a previous merger agreement with Brookfield Asset Management Inc., according to a company news release.
Farallon-managed funds own more than 10.8% of the outstanding common shares of The Mills. Simon Property has an option to acquire approximately 4.9% of The Mills common shares from Stark Master Fund Ltd.
"We believe the agreement with Simon Property Group and Farallon offers excellent value to The Mills' stockholders and gives them the chance to receive consideration quickly by means of the tender offer," The Mills president and chief executive officer Mark S. Ordan said in the release.
In addition, Simon Property Group is replacing The Mills' senior term loan and revolving line of credit from Brookfield with a new senior term loan and revolving line of credit.
Simon Property Group is a real estate investment trust located in Indianapolis, Ind.
Farallon Capital Management is a San Francisco-based investment management company.
Mills is a Chevy Chase, Md., retail developer.
| Acquirer: | Simon Property Group, Inc., Farallon Capital Management, LLC
|
| Target: | The Mills Corp.
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| Transaction value: | $7.9 billion
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| Payment per share: | $25.25
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| Announcement date: | Feb. 16
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| Offer closes: | 45 days from tender start day slated for end of Feb.
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| Stock price for target: | NYSE: MLS: $26.70 on Feb. 15
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