General Growth Properties has bought warrants held by affiliates of The Blackstone Group and Fairholme Funds for approximately USD633m.
General Growth Properties will fund the transactions using its available cash resources.
The warrants were exercisable into approximately 52 million common shares of the company at a weighted average exercise price of approximately USD9.37 per share. The warrants were scheduled to expire in November 2017. Effective with these transactions, Blackstone and Fairholme no longer hold any warrants to acquire the company's common shares.
In addition, pursuant to an offer previously made by Brookfield Asset Management to General Growth Properties, the independent members of the company's board of directors decided not to purchase the warrants recently acquired by Brookfield from affiliates of Pershing Square Capital Management.
Brookfield is now the sole holder of General Growth Properties' remaining outstanding warrants which are currently exercisable into approximately 83 million common shares of the company at a weighted average exercise price of approximately USD9.53 per share.