Brookfield Proposes To Take Its Real Estate Wing Private In US$ 5.9Bn Deal

2 min read | January 04, 2021 11:05 AM EST | By Team Kalkine Media

Brookfield Proposes To Take Its Real Estate Wing Private In US$ 5.9Bn Deal

Brookfield Asset Management (TSX: BAM.A) Vs Brookfield Property Partners

Following the announcement of the deal, Brookfield Property Partners saw its stock price jump about 16 per cent on the Toronto Stock Exchange (TSX) around 7.30 am on Monday. The real estate company took quite a tumble amid the pandemic-triggered market crash, swooping to record lows around March and April. The scrips have since climbed over 24 per cent in the last three months and about 38 per cent in the last six months. It currently has a market cap of C$ 9.2 billion.

Stocks of Brookfield Asset Management, on the other hand, dwindled about three per cent early Monday morning. It posted a growth of 13 per cent in the last three months and of nearly four per cent in 2020.

Image source: ©Kalkine Group 2021

What More Does The Proposal Say?

The Canadian asset management company stated in the proposal that those who have invested in Brookfield Property Partners can:

either choose to take the value of US$ 16.5 per unit in cash
take 0.4 of the Brookfield Asset Management stock
or take 0.66 of the preferred units of Brookfield Property

Shareholders of Brookfield Property REIT Inc, on the other hand, can also take part in this deal once they trade their units for those of Brookfield Property Partners.

The proposal has been submitted to Brookfield Property Partners’ board of directors, which is expected to review the offer via a special committee.

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