Simon Property Group News: Why SPG Stock Is Surging 8% Today

Simon Property Group (NYSE:SPG) news for Monday concerning a deal with Taubman Centers (NYSE:TCO) has SPG stock soaring higher.

building facade of simon property group (SPG)
Source: Jonathan Weiss / Shutterstock.com

A Simon Property Group news release reveals that the company is close to completing its merger with Taubman Centers. This will have it paying $43 per share for TCO stock and taking an 80% interest in the company.

The merger deal between the two companies will have the Taubman family selling one-third of its stake in the company to allow this. Following that, the family will still hold a 20% stake in Taubman Centers.

As part of the agreement, Taubman Centers won’t be paying a dividend to investors prior to March 1, 2021. Even after this, it will only be allowed to pay a dividend on its common stock under certain conditions and limitations.

Simon Property Group and Taubman Centers note that the deal has the support of both companies’ Board of Directors. It has also gained approval from a special committee of independent directors at TCO.

The Simon Property Group news release notes that the deal needs to complete customary closing conditions before it can close the deal. That includes getting approval from regulators as well as shareholders. So long as they don’t run into any trouble, the two companies are expecting the deal to close in late 2020 or early 2021.

SPG stock was up 7.8% and TCO stock was up 8.2% as of noon Monday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/simon-property-group-news-boosts-spg-stock/.

©2021 InvestorPlace Media, LLC