Image source: Taubman Centers
(Reuters) – Simon Property Group Inc, the biggest U.S. mall operator, said it reached an agreement to cut the price of its looming takeover of rival Taubman Centers Inc to $43 a share in cash, the companies said on Sunday.
Under the original agreement announced in February, Taubman shareholders were to receive $52.50 per share in cash.
The revised agreement continues to provide that Simon will acquire an 80% ownership in The Taubman Realty Group (TRG) Ltd Partnership, they said.
The Taubman family will sell about one-third of its ownership interest at the transaction price and continue to hold a 20% stake in TRG, the companies added.
Simon and Taubman said they also have settled their pending litigation in Michigan state court over the merger.
Simon Property said in June it was abandoning the deal, citing the hit the retail sector has taken during the COVID-19 pandemic. Simon Property also said that Taubman did not cut costs to mitigate the impact of the pandemic.
Taubman had said at that time Simon’s termination of the deal was without merit and it filed a counterclaim in lawsuit, rejecting Simon’s allegations.
Reporting by Rama Venkat in Bengaluru; Editing by Sam Holmes and Diane Craft.
_____
Source: Reuters
Read Next
