Rouse Agrees to Be Bought by Brookfield in $2.8 Billion Deal

  • Takeover bid sweetened to $18.25 a share, a 35% premium
  • Brookfield already owns a third of U.S. mall landlord

U.S. shopping-mall owner Rouse Properties Inc. agreed to be bought by an affiliate of Brookfield Asset Management Inc. in a sweetened offer valued at $2.8 billion, including debt.

Brookfield will pay $18.25 a share to acquire all of Rouse’s outstanding common stock, for a total equity value of $1.06 billion. Brookfield last month made an unsolicited bid to buy the New York-based mall company for $17 a share.

The new offer represents a premium of about 35 percent to Rouse’s closing stock price on Jan. 15, the last trading day prior to Brookfield’s initial bid, Rouse said in a statement Thursday.

“Brookfield’s increased proposal provides shareholders with compelling value as well as a high degree of execution certainty, further validating the strength of the platform that Rouse has built,” David Kruth, a Rouse board member who headed a committee formed to evaluate Brookfield’s offer, said in the statement.

Brookfield already owns about a third of Rouse. The company was spun off in 2012 off from mall owner General Growth Properties Inc., after General Growth emerged from bankruptcy with financing from an investor group led by Brookfield. The Rouse spinoff contained 30 retail properties in smaller cities and second-tier properties in larger markets.

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