In the last trading session, the stock price of GGP Inc (NYSE:GGP) gained more than 1% to close the day at $23.40. The gains came at share volume of around 6 million compared to average share volume of 7.33 million. GGP has declined around 6% so far in this year.
As per the latest update, Brookfield Property Partners LP is putting in efforts to restructure its proposal for the shares of GGP that it doesn’t own. Last month, the firm proposed a public offer valued at $14.8 billion, or $23 a share, for the 66% of company it doesn’t own. The offer was 50% in cash and 50% in equity.
However, GGP had declined the proposal, cautious of accepting Brookfield equity in its current form. Now, the real-estate firm is evaluating two options to modify its proposal. In one option, Brookfield would establish a new form of stock to utilize as consideration. It would be equity in a firm established by hiving off some of Brookfield Property’s assets and combining those with GGP. It isn’t evident which Brookfield assets those would be. The company shareholders even would get cash. It isn’t evident whether that consideration would be the same sum as in the current proposal or not.
In the second alternative, Brookfield Property would discount the cash component and offer its stock. It is in talks with other investors about offering additional funds to support this alternative. It isn’t evident what either fresh bid would be worth. The possibility is Brookfield will go against either option or it can restructure the proposal in an entirely different way.
GGP owns nearly 125 high-end retail centers in the United States, including Tysons Galleria and Glendale Galleria. It emerged from bankruptcy back in 2010 with support from Brookfield Property and other investors.