Simon Property Group, the biggest U.S. mall operator, and Taubman Centers have reached a definitive agreement to modify certain terms of their original merger agreement, including a revised purchase price of $43.00 per share in cash.
Under the new agreement, Simon Property Group will pay a $43 per share for Taubman Centers, down from an original price of $52.50.
Simon said the revised merger agreement continues to provide that Simon will acquire an 80% ownership interest in The Taubman Realty Group Limited Partnership (TRG). The Taubman family will sell approximately one-third of its ownership interest at the transaction price and remain a 20% partner in TRG.
”The Boards of Directors of Simon and Taubman, including the Special Committee of independent directors of Taubman, have approved the terms of the transaction. The modified merger agreement provides that Taubman will not declare or pay a dividend on its common stock prior to March 1, 2021, and then, only subject to certain limitations and conditions”, said in the statement.
The merger is expected to close in late 2020 or early 2021, subject to Taubman shareholder approval and customary closing conditions.