Brookfield Asset Management and The Fairholme Fund Reach Agreement on Exchange of Fairholme's General Growth Shares for Brookfie
18 Januar 2011 - 4:24PM
Marketwired
Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM)(EURONEXT:
BAMA) today announced it has signed an agreement to acquire 113.3
million common shares in General Growth Properties Inc., a leading
U.S. mall operator, from the Fairholme Fund, in a transaction
valued at approximately $1.7 billion. The transaction increases
Brookfield's consortium's ownership of General Growth from
approximately 27% to 38%.
Brookfield will issue 27.5 million Class A shares valued at $907
million to Fairholme based on stock market prices and pay $804
million in cash from general corporate sources to acquire the
General Growth shares. On completion of the transaction, Fairholme
will own a 4.5% equity interest in Brookfield.
Fairholme is selling its entire common share holding in General
Growth, but continues to own warrants to acquire common shares in
General Growth.
"We are pleased to have this opportunity to substantially
increase our ownership in General Growth's market dominant
portfolio of premier shopping malls at an attractive valuation,"
said Bruce Flatt, Chief Executive Officer of Brookfield.
"Fairholme's team provided unwavering support during the
recapitalization of General Growth and as one of the top performing
mutual fund managers of the last decade, we welcome them as
investors in Brookfield."
Fairholme has agreed to certain restrictions on the acquisition
of additional shares of Brookfield. Brookfield's purchase of
Fairholme's shares in General Growth complies with the agreement
entered into at the time of the restructuring of General Growth,
which limits the Brookfield consortium's ownership to 45% of
General Growth.
Brookfield Asset Management Inc., focused on property, renewable
power and infrastructure assets, has over $100 billion of assets
under management and is co-listed on the New York and Toronto Stock
Exchanges under the symbol BAM and on NYSE Euronext under the
symbol BAMA. For more information, please visit our website at
www.brookfield.com.
For more information, please visit our web site at
www.brookfield.com
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful. The
securities referenced herein have not been registered under the
United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold within the United
States absent registration or an applicable exemption from the
registration requirements of such Act or laws.
Note: This press release contains forward-looking information
within the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended, Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, "safe harbour"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. The words "will," "can," "may," "would" and "should"
are predictions of or indicate future events, trends or prospects
or identify forward-looking statements. Forward-looking statements
in this press release include statements with respect to the
consummation of the acquisition of the shares of General Growth
Properties, Inc. from Fairholme and the benefits thereof. Undue
reliance should not be placed on forward-looking statements because
they involve known and unknown risks, uncertainties and other
factors, which may cause the actual results to differ materially
from the anticipated future results expressed or implied by such
forward-looking statements. There can be no assurance that the
proposed transaction will be consummated or that the anticipated
benefits will be realized. The proposed transaction is subject to
the fulfilment of certain conditions, and there can be no assurance
that such approvals will be obtained and/or such conditions will be
met. When relying on forward-looking statements to make decisions
with respect to Brookfield Asset Management, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, the
company undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
that may be as a result of new information, future events or
otherwise.
Contacts: Media: Brookfield Asset Management Inc. Andrew Willis
SVP, Communications and Media (416) 369-8236 (416) 363-2856 (FAX)
andrew.willis@brookfield.com Investor Relations: Brookfield Asset
Management Inc. Katherine Vyse SVP, Investor Relations and
Communication (416) 369-8246 (416) 363-2856 (FAX)
kvyse@brookfield.com www.brookfield.com
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