The new deal will see Simon Property Group now pay $43 per share for Taubman Centres, a significant decrease from the original price of $52.50 per share.
The modified merger agreement continues to provide that Simon will acquire an 80 per cent ownership in luxury mall owner Taubman Centres. The news comes following an agreement made in February where Simon has agreed to buy Taubman in a deal valued at $3.6bn. However, this was terminated in June with Simon citing Taubman’s suffering portfolio as the contributing factor.
The modified merger agreement also states 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.
Both Simon’s and Taubman’s board of directors have approved the terms of the new transaction. The merger is expected to close in late 2020 or early 2021, subject to Taubman shareholder approval and customary closing conditions.
