Simon Property Group Makes Bid for Macerich

Simon Property Group Inc., seeking to solidify its position as the nation’s largest mall owner and operator, has made a bid to acquire The Macerich Company for $91 per share in cash and Simon shares. The total value of the proposed transaction is $22.4 billion, including the assumption of Macerich’s $6.4 billion of debt. Macerich shareholders would receive consideration in the form of 50 percent cash and 50 percent Simon common stock, utilizing a fixed exchange ratio. The offer represents a 30 percent premium over Macerich’s closing stock price of $69.88 on Nov. 18, 2014, the day before Simon disclosed its 3.6 percent investment in the company, which is equivalent to 5.71 million shares. Simon also has reached an agreement in principle to sell selected Macerich assets to General Growth Properties Inc. in connection with the closing of the acquisition. Neither transaction financing nor the sale of assets to General Growth will be a condition to closing the proposed transaction.

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