NEW YORK, N.Y. - Brookfield Office Properties Inc. (TSX:BPO) is beginning the next phase of its friendly takeover of MPG Office Trust, Inc. (NYSE:MPG), which brings interests in four more Los Angeles towers to BPO's property holdings.
Brookfield Office Properties, part of a Canadian conglomerate of companies, is offering US$25 cash for each of share of MPG preferred stock tendered by July 12, the New York-based real-estate company announced Friday.
The preferred stock offer was announced in April as part of the takeover of MPG by Brookfield and its institutional investment partners. At the time, BPO said it expected to make the tender offer for MPG's preferred shares in early May.
The larger deal involves the purchase of MPG's common shares by a fund led by Brookfield Office Properties with about $600 million pledged by BPO's institutional partners.
The DTLA Holdings fund has offered US$3.15 cash for each of MPG's common shares, a 21 per cent premium to the April 24 closing price of US$2.60 per MPG common share.
BPO will have a controlling 47 per cent interest in DTLA Holdings, which will own the Bank of America Plaza and two other L.A. properties from Brookfield as well as the Wells Fargo Tower and three other properties from MPG.
BPO is contributing $140 million cash and several properties in downtown Los Angeles valued at a total of $410 million to the fund.
Brookfield Properties is a publicly traded subsidiary of Brookfield Asset Management (TSX:BAM.A), a Toronto-based company with a wide range of holdings primarily in the real estate, power generation and resource sectors.