Shoppers walk through the King of Prussia mall in King of Prussia, Pennsylvania.
Jennah Moon | Bloomberg | Getty Images
Taubman Centers shares skyrocketed Monday after the company agreed to be bought by larger peer Simon Property Group in a deal valued at $3.6 billion, the companies said on Monday.
Simon plans to aquire Taubman’s stock for $52.50 a share, or a 51% premium to where Taubman shares closed on Friday.
The news sent Taubman’s stock soaring up 52% after it resumed trading following a halt for the announcement. Simon shares fell less than 1% in premarket trading. Simon’s stock, which has a market value of $45.2 billion, is down 24% over the past 12 months.
Simon, which is known for owning and operating top-tier shopping malls, said it expects the deal to immediately boost its funds from operations, adding at least 3% on annualized basis.
Taubman will continue to be managed by Robert Taubman, its chairman, president and CEO. The company owns, manages or leases 26 super-regional shopping centers in the U.S. and Asia.
The Taubman family is selling one third of their stake and will continue to own 20% of Taubman Realty Group LP.
The deal is expected to close by mid-2020.
This is breaking news. Please check back for updates.
