Brookfield Asset Bids for Rest of Brookfield ResidentialBrian Louis
Brookfield Asset Management Inc. plans to buy the 30 percent of Brookfield Residential Properties Inc. that it doesn’t own for $846 million.
The offer is for $23 in cash for each of the remaining 36.8 million shares, Toronto-based Brookfield Asset Management said in a statement today. That’s about 20 percent more than yesterday’s closing price, the company said.
The company, which has about $200 billion under management, said it presented its proposal to Brookfield Residential asking it to review the deal and appoint a committee of independent directors to obtain a valuation of the company’s shares.
Brookfield Residential is a Calgary-based land developer and homebuilder with operations in 11 markets in the U.S. and Canada. It has already established the committee to review the offer, the company said in a statement. Shareholders don’t need to take any action at this time, it said.
Shares of Brookfield Residential have fallen 18 percent in the year through yesterday. Brookfield Asset Management rose 13 percent over that period.