On Monday, Simon Property Group Inc. (NYSE: SPG) announced it has agreed to acquire real-estate investment trust Taubman Centers Inc. (NYSE: TCO) in an all-cash deal valued at USD 3.6 billion.
Taubman shares surged 53% early Monday. This year, shares had already been up more than 10%, but the stock is down around 30% from its price 12 months ago.
Shares of the Simon Property Group showed little change to the news.
Simon Property Group, the largest owner of US malls, will pay USD 52.50 per Taubman share, for a 51% premium over the stock’s closing price on Friday.
Including Dolphin in Miami, Short Hills in New Jersey and Beverly Center in Los Angeles, Taubman owns or manages 26 malls. The Company generated USD 972 in sales per square foot last year, with an occupancy rate of about 94%.
Robert S. Taubman said:
“Since Taubman Centers’ founding 70 years ago, we have built a portfolio of high-quality assets and continuously adapted to the evolving retail landscape. I am proud of all that this company’s talented employees have achieved and am thrilled to have the opportunity to join together with Simon through this joint venture. Over the last few years, David and I have developed an excellent personal relationship and importantly, Simon shares our commitment to serving retailers, shoppers and the communities in which we operate. The Board and I are confident that Simon is the ideal partner to help us build on our progress.”
Under the helm of the CEO, Chairman and President, Robert S. Taubman, the Company will continue to be managed by its existing executive team.
Lately, the department store sector was highly impacted by competitors from online retailers such as Amazon (NASDAQ: AMZN) as well as discount brick-and-mortar and big box retailers. Last week, Macy’s reported (NYSE: M) ts plans to close 125 stores in the next three years.
52 week low/high
Breaking News: Wearable Health Solutions Inc. Launches New Direct-to-Consumer Website to Expand it’s Market Share into $8.20 Billion Global Personal Emergency Response Systems Market
Wearable Health Solutions Inc. (OTC: WHSI), a leading provider of wearable health solutions, is delighted to announce the launch of its new Direct-to-Consumer website, https://www.1800medalert.com/. This exciting development aims to bring their...
The Boeing Company (NYSE: BA) stock jumped more than 8 percent Wednesday after it has reported first-quarter financials. The major manufacturer of commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch...
Conduent Incorporated (NASDAQ: CNDT) announced Thursday that its disease surveillance and outbreak management platform, Maven®, is now available on Amazon Web Services (AWS). According to the Company, the Maven solution was recently configured to...