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Brookfield Asset Management said it would offer $16.50 for each Brookfield Property shares it does not already own, a premium of 14% to Thursday’s close.
Shares of Brookfield Property Partners, which operates everything from offices, retail malls and logistics properties around the world, rose 15% in premarket trading.
“The privatization will allow us to have greater flexibility in operating the portfolio and realizing the intrinsic value of BPY’s high-quality assets,” Brookfield Asset Management Chief Financial Officer Nick Goodman said in a statement.
The deal is subject to Brookfield Property board’s approval.