(Reuters) - Simon Property Group Inc SPG.N said on Thursday it has bought 28.7 percent stake in French real estate group Klepierre LOIM.PA from BNP Paribas BNPP.PA for about 1.5 billion euros ($2 billion), boosting its global footprint.
Simon Property will pay 28 euros per share. The transaction, which is expected to close next week, would make Simon Property Klepierre’s largest shareholder.
Under terms of the deal, Simon Property Chief Executive David Simon would become the chairman of Klepierre’s nine member supervisory board. Two other SPG representatives would also join the board.
Simon Property, the largest owner of U.S. malls and outlet centers, will receive Klepierre’s dividend to be declared in April 2012.
The Indianapolis, Indiana-based company has also agreed to acquire its joint venture partner, Farallon Capital Management LLC’s stake in 26 assets of the Mills Ltd Partnership for $1.5 billion.
Simon Property revised its full-year outlook and now expects 2012 funds from operations to be between $7.35 to $7.50 per share, up from $7.20 to $7.30 per share.
$1 = 0.7622 euros Reporting by Eileen Anupa Soreng in Bangalore;
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