Simon Reaches New Deal to Buy Taubman – WWD

Simon Property Group Inc. and Taubman Centers Inc. have struck a new deal.

Not long ago, Simon was looking to back out of its plan to buy Taubman. But on Sunday evening, the shopping center operators revealed they reached a definitive agreement modifying certain terms of the original merger agreement, including a new purchase price of $43 a share in cash, or about $3 billion, and other provisions to reduce closing conditions. That’s a significant drop from the original proposal in February 2020 by Simon to pay $52.50 a share, or $3.6 billion.

The merger is expected to close in late 2020 or early 2021. Simon and Taubman also settled their pending litigation in the Circuit Court for the 6thJudicial District, Oakland County, Michigan.

The modified merger agreement continues to provide that Simon will acquire an 80 percent ownership interest in The Taubman Realty Group Limited Partnership. The Taubman family will sell about one-third of its ownership interest at the transaction price and remain a 20 percent partner in TRG.

The boards of both shopping center developers, including the special committee of independent directors of Taubman, approved the terms of the transaction.

The modified merger agreement provides