Simon Property Group Announces $3.6B Acquisition Of Taubman Group

Simon Property Group, Inc. SPG said Monday it plans to purchase an 80% ownership interest in Taubman Centers, Inc. TCO-owned Taubman Realty Group for $52.50 per share in cash.

Simon expects to fund the total required cash consideration of approximately $3.6 billion with existing liquidity.

The Bloomfield Hills, Michigan-based Taubman Realty Group manages and leases 26 regional shopping centers in the U.S. and Asia. They'll continue to be managed by the existing team lead by Robert Taubman, the company's chairman, president and CEO, according to the Monday press release.

"We are very pleased to announce this transaction, which will be immediately accretive to Simon's FFO,” Simon CEO David Simon said in a statement.

“By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities. I look forward to partnering with Bobby and the TRG executive team in this exciting new joint venture." 

The deal is expected to close in mid-2020, the companies said.

Simon Property shares were trading down 0.33% at $140.55 at the time of publication in Monday's premarket session, while Taubman shares were rallying by 52.12% to $52.74.

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Photo by ChildOfMidnight via Wikimedia.