Boston, MA 09/17/2014 (wallstreetpr) – Washington Prime Group Inc (NYSE:WPG), a by-product of Simon Property Group Inc (NYSE:SPG) developed within a year. Washington Prime declared recently that it will acquire Glimcher Realty Trust (NYSE:GRT). The deal will be financed by way of cash as well as the stock, and shall be valued at a price of approximately $2.06 billion. If debt is included in the deal, the overall value will sum up at around $4.3 billion.
Highlights of the Deal
In what is said to be the mall mash-up, combination of the two companies will allow them to own a total of 119 malls as well as the shopping centers in and around the U.S. The deal will be finalized in Q1 of the next fiscal year. The combined company will be called WP Glimcher.
As far as the price of the deal is concerned, the Washington Prime Group Inc (NYSE:WPG) announced that it will make a payment of $14.20 in cash as well as stock per share of Glimcher Realty Trust. This is 34% premium in comparison to the closing share price of the latter on Monday.
According to the agreement, Glimcher will be required to sell its two shopping centers to Simon Property for an amount of $1.09 billion. These two shopping centers are located at Texas-based University Park Village, Forth Worth and New Jersey-based Jersey Gardens, Elizabeth.
The newly formed combined company will be publically traded under the ticker name Washington Prime Group Inc (NYSE:WPG) at the New York Stock Exchange.
WP Glimcher will have its headquarters in Ohio at Columbus. These are also the present headquarters of Glimcher, while Washington Prime Group operates from Bethesda, Maryland.
From Strip Malls to Large Malls
Washington Prime Group Inc was spun off from Simon Property Group Inc in May 2014. The former, at present, operates small enclosed malls as well as strip malls. The reason for spinning off Washington Prime Group Inc (NYSE:WPG) was to allow Simon to focus on premium outlets, as well as larger malls with higher grossing revenue.
