![]() ![]() ![]() The transaction is expected to be completed in the summer following approval, among other things, by the companies' shareholders. Simon will pay about $1.46 billion in stock and take on DeBartolo Realty's debt of about $1.5 billion. Under the terms of the agreement, DeBartolo shareholders will receive 0.68 share of Simon common stock for each share they own of DeBartolo Realty stock. The properties generated a combined $16 billion in retail sales in 1995, the companies said. The combined company will be called the Simon DeBartolo Group and have a market capitalization of approximately $7.5 billion and a portfolio of 111 regional shopping centers, 66 strip shopping centers and 6 specialty retail centers spread over 32 states. Simon's share price closed at $23.625, down 37.5 cents. Shares in DeBartolo Realty rose 75 cents each, to $15.375, closing short of a record high it reached earlier in the day of $16.125. "It seems to be a good fit on both sides." Mead, an industry analyst who follows both companies for Legg Mason Wood Walker. "Both companies realize that the retail environment is not as robust as it was," said Michael L. And finally, analysts and company executives said, the agreement would give greater leverage in dealing with tenants in a soft retail environment. As competitors, the two companies had carefully avoided each other, so there would be little overlap among their assets. For Simon, the deal furthers its strategy of growing through acquisitions. The Simon Property Group said yesterday that it would acquire the DeBartolo Realty Corporation for nearly $1.5 billion under an agreement that would solidify Simon's position as the largest developer and operator of shopping centers in the country.Ĭompany executives and industry analysts said the deal, which also includes the assumption of $1.5 billion in debt, represented a good match of the assets as well as the strategies of two companies that are largely responsible for developing and expanding the concept of the regional mall.īy joining forces with Simon, DeBartolo Realty will gain access to less expensive capital for its plan to upgrade, expand and build new malls. ![]()
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