As previously announced, on March 26, 2018, GGP Inc.
(“GGP”) (NYSE: GGP) and Brookfield Property Partners L.P. (“BPY”)
entered into a definitive agreement pursuant to which BPY will
acquire all of the shares of GGP common stock, par value $0.01 per
share, that BPY and its affiliates do not already own, through a
series of transactions (collectively, the “Transactions”),
including the declaration of a special dividend. As more fully
described in the Merger Agreement (as defined below), the special
dividend is payable to the holders of record of shares of GGP
common stock (not including restricted shares of GGP common stock)
as of the end of trading on the New York Stock Exchange (the
“NYSE”) on the first business day following receipt of the
requisite stockholder approval of the Transactions and following
the exchange of all shares of GGP common stock held by certain
affiliates of BPY for series B preferred stock to be authorized and
issued by GGP pursuant to the terms of the Merger Agreement (the
“Pre-Closing Dividend”). GGP today announced that its board of
directors (the “Board”), upon the recommendation of the special
committee of the Board, comprised entirely of non-management
independent directors who are not affiliated with BPY (the “Special
Committee”), fixed the end of trading on the NYSE on July 27, 2018
as the record date for, and declared, the Pre-Closing Dividend. The
payment of the Pre-Closing Dividend is conditioned upon, among
other things, the Transactions having been approved by the holders
of GGP common stock at the Special Meeting (as defined below) and
the satisfaction of other customary closing conditions.
In aggregate, the Pre-Closing Dividend consists of the Aggregate
Cash Dividend Amount (as such term is defined in the Merger
Agreement) and a number of shares of class A stock, par value $0.01
per share, to be authorized and issued by Brookfield Property REIT
Inc. (“BPR”) (the surviving corporation following the consummation
of the Transactions) upon the amendment and restatement of GGP’s
certificate of incorporation on the Charter Closing Date (as such
term is defined in the Merger Agreement) equal to the Aggregate
Stock Dividend Amount (as such term is defined in the Merger
Agreement), as appropriately adjusted pursuant to the terms of the
Merger Agreement (to the extent applicable), with a payment date of
the Charter Closing Date.
As more fully described in the Merger Agreement, holders of GGP
common stock who are entitled to receive the Pre-Closing Dividend
will have the right to elect to receive either cash and/or class A
stock of BPR or limited partnership units of BPY, subject to
proration. The election forms setting forth detailed instructions
on how to make an election to receive cash and/or class A stock of
BPR or BPY units will be mailed to such holders on or after the
record date for the Pre-Closing Dividend. Any shares of GGP common
stock that are entitled to make an election for which an effective,
properly completed election form has not been received by the
deadline specified in the election forms will be deemed to have
made a cash election and will be deemed to have made an election to
receive BPY units to the extent any equity is received or entitled
to be received due to proration. Thus, any holder of GGP common
stock that wishes to receive a portion of their consideration in
class A stock of BPR must submit a properly completed election form
prior to the deadline.
It is anticipated that from trading on July 26, 2018, the
business day immediately prior to the record date for the
Pre-Closing Dividend, through (and including) the payment date for
the Pre-Closing Dividend, GGP common stock will trade with “due
bills” attached, pursuant to which, during such period, the
transferor of any GGP common stock will relinquish its entitlement
to the Pre-Closing Dividend to the transferee and the transferee of
any GGP common stock will be deemed to have made an election to
receive the default cash in the Pre-Closing Dividend and to receive
BPY units to the extent any equity is received or entitled to be
received due to proration. It is currently expected that the NYSE
will not issue an ex-dividend date with respect to the Pre-Closing
Dividend. More detailed information about the Pre-Closing Dividend
will be included in the election forms and materials which will be
mailed to holders of GGP common stock who are entitled to receive
the Pre-Closing Dividend on or after the record date for the
Pre-Closing Dividend.
In connection with the Transactions, GGP has filed a definitive
proxy statement with the U.S. Securities and Exchange Commission
(the “SEC”) on June 27, 2018, which contains a notice of
a special meeting of holders of GGP common stock to be held on
July 26, 2018 for the purpose of obtaining the requisite
stockholder approval of the Transactions (the “Special
Meeting”).
GGP expects that the Transactions will be completed in the third
quarter of 2018, subject to, among other things, receipt of the
requisite stockholder approval of the Transactions and the
satisfaction of other customary closing conditions.
About GGP Inc.
GGP Inc. is an S&P 500 company focused exclusively on
owning, managing, leasing and redeveloping high-quality retail
properties throughout the United States. GGP is headquartered in
Chicago, Illinois, and publicly traded on the NYSE under the symbol
GGP.
About Brookfield Property Partners L.P.
Brookfield Property Partners is one of the world’s largest
commercial real estate companies, with approximately $69 billion in
total assets. We are leading owners, operators and investors in
commercial real estate, with a diversified portfolio of premier
office and retail assets, as well as interests in multifamily,
triple net lease, industrial, hospitality, self-storage, student
housing and manufactured housing assets. Brookfield Property
Partners is listed on the NASDAQ and Toronto stock exchanges.
Further information is available at bpy.brookfield.com.
Brookfield Property Partners is the flagship listed real estate
company of Brookfield Asset Management, a leading global
alternative asset manager with over $285 billion in assets under
management.
Additional Information and Where to Find It
This communication is being made in respect of the proposed
transaction contemplated by the Agreement and Plan of Merger, dated
as of March 26, 2018 and as amended on
June 25, 2018, among BPY, Goldfinch Merger Sub Corp. and
GGP (as may be further amended or otherwise modified from time to
time in accordance with its terms, the “Merger Agreement”). This
communication may be deemed to be solicitation material in respect
of the proposed transaction involving BPY and GGP. In connection
with the proposed transaction, BPY filed with the SEC a
registration statement on Form F-4 (File No.: 333-224594) that
includes a prospectus of BPY (the “BPY prospectus”), and GGP filed
with the SEC a registration statement on Form S-4 (File No.:
333-224593) that includes a proxy statement/prospectus of GGP (the
“GGP proxy statement/prospectus”). The parties also filed a
Rule 13E-3 transaction statement on Schedule 13E-3. The
registration statements filed by BPY and GGP were declared
effective by the SEC on June 26, 2018 and GGP has mailed
the GGP proxy statement/prospectus in definitive form to its
stockholders of record as of the close of business on
June 22, 2018. Each of BPY and GGP may also file other
documents with the SEC regarding the proposed transaction. This
communication is not a substitute for the BPY prospectus, the GGP
proxy statement/prospectus, the registration statements or any
other document which BPY or GGP may file with the SEC. INVESTORS
AND SECURITY HOLDERS ARE URGED TO READ THE ABOVE-REFERENCED AND
OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, AS WELL
AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND
IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN
OR WILL CONTAIN IMPORTANT INFORMATION ABOUT BPY, GGP, THE PROPOSED
TRANSACTION AND RELATED MATTERS. Investors and stockholders may
obtain free copies of the above-referenced and other documents
filed with the SEC by BPY and GGP, when available, through the
SEC’s website at http://www.sec.gov. In addition, investors may
obtain free copies of the above-referenced and other documents
filed with the SEC by BPY, when available, by contacting BPY
Investor Relations at bpy.enquiries@brookfield.com or +1 (855)
212-8243 or at BPY’s website at http://bpy.brookfield.com, and may
obtain free copies of the above-referenced and other documents
filed with the SEC by GGP, when available, by contacting GGP
Investor Relations at (312) 960-5000 or at GGP’s website at
http://www.ggp.com.
Non-solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Participants in Solicitation
BPY, GGP and their respective directors and executive officers
and other persons may be deemed to be participants in the
solicitation of proxies from GGP stockholders in respect of the
proposed transaction that is described in the BPY prospectus and
the GGP proxy statement/prospectus. Information regarding the
persons who may, under the rules of the SEC, be deemed participants
in the solicitation of proxies from GGP stockholders in connection
with the proposed transaction, including a description of their
direct or indirect interests, by security holdings or otherwise, is
set forth in the BPY prospectus and the GGP proxy
statement/prospectus. You may also obtain the documents that BPY
and GGP file electronically free of charge from the SEC’s website
at http://www.sec.gov. Information regarding BPY’s directors and
executive officers is contained in BPY’s 2017 Annual Report on
Form 20-F filed with the SEC on March 9, 2018.
Information regarding GGP’s directors and executive officers is
contained in GGP’s 2017 Annual Report on Form 10-K filed with
the SEC on February 22, 2018 and its 2018 Annual Proxy
Statement on Schedule 14A filed with the SEC on
April 27, 2018.
Forward-Looking Statements
This communication contains “forward-looking information” within
the meaning of Canadian provincial securities laws and applicable
regulations and “forward-looking statements” within the meaning of
“safe harbor” provisions of applicable U.S. securities laws,
including the United States Private Securities Litigation Reform
Act of 1995. Forward-looking statements include statements that are
predictive in nature or depend upon or refer to future events or
conditions, include statements regarding the expected timing,
completion and effects of the proposed transaction, our operations,
business, financial condition, expected financial results,
performance, prospects, opportunities, priorities, targets, goals,
ongoing objectives, strategies and outlook, as well as the outlook
for North American and international economies for the current
fiscal year and subsequent periods, and include words such as
“expects,” “anticipates,” “plans,” “believes,” “estimates,”
“seeks,” “intends,” “targets,” “projects,” “forecasts,” “likely,”
or negative versions thereof and other similar expressions, or
future or conditional verbs such as “may,” “will,” “should,”
“would” and “could.”
Although we believe that our anticipated future results,
performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information
because they involve known and unknown risks, uncertainties and
other factors, many of which are beyond our control, which may
cause our actual results, performance or achievements to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information.
Factors that could cause actual results to differ materially
from those contemplated or implied by forward-looking statements
include, but are not limited to: the occurrence of any event,
change or other circumstance that could affect the proposed
transaction on the anticipated terms and timing, including the risk
that the proposed transaction may not be consummated; risks related
to BPY’s ability to integrate GGP’s business into its own and the
ability of the combined company to attain expected benefits
therefrom; risks incidental to the ownership and operation of real
estate properties including local real estate conditions; the
impact or unanticipated impact of general economic, political and
market factors in the countries in which we do business; the
ability to enter into new leases or renew leases on favorable
terms; business competition; dependence on tenants’ financial
condition; the use of debt to finance our business; the behavior of
financial markets, including fluctuations in interest and foreign
exchange rates; uncertainties of real estate development or
redevelopment; global equity and capital markets and the
availability of equity and debt financing and refinancing within
these markets; risks relating to our insurance coverage; the
possible impact of international conflicts and other developments
including terrorist acts; potential environmental liabilities;
changes in tax laws and other tax related risks; dependence on
management personnel; illiquidity of investments; the ability to
complete and effectively integrate other acquisitions into existing
operations and the ability to attain expected benefits therefrom;
operational and reputational risks; catastrophic events, such as
earthquakes and hurricanes; and other risks and factors detailed
from time to time in our documents filed with the securities
regulators in Canada and the United States.
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When relying on our
forward-looking statements or information, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
that may be as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180717005456/en/
GGP Inc. Contact:Kevin Berry, 312-960-5529 (O)EVP Human
Resources & CommunicationsM: (708)
308-5999kevin.berry@ggp.comorBrookfield Contact:Matthew
Cherry, 212-417-7488 (O)SVP, Investor Relations &
CommunicationsM: (917) 209-7343matthew.cherry@brookfield.com
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