Popular shopping mall owner Mills Corp. this morning agreed to a merger with two out-of-state firms, heading off future financial challenges.
The Chevy Chase-based retail investment trust will merge with Simon Property Group Inc., based in Indiana, and Farallon Capital Management LLC, based in San Francisco.
The two firms will buy Mills shares for $25.25 per share, making the deal worth about $1.64 billion.
Mills Corp. terminated a previous purchase agreement with Brookfield Asset Management Inc., based in New York.
“We believe the agreement with SPG and Farallon offers excellent value to the Mills’ stockholders and gives them the chance to receive consideration quickly by means of a tender offer,” said Mark S. Ordan, chief executive officer and president of Mills said in a statement.
Earlier today, shares of Mills were trading at $25.40, down $1.30 or 4.87 percent.
Baltimore-area malls owned by Mills corp. include Lakeforest Mall in Gaithersburg, Marley Station in Glen Burnie and Arundel Mills in Hanover.
