Brookfield Property Partners L.P. BPY

What protection is there?

[Robman1]

I've seen mention that BAM could buy bpy back. What's in place to keep them honest in terms of the price they over to existing shareholders?

[born2trade]

My conservative estimate is $15 CAD per share . This represents 20 to 25% increase from the today price. Anything higher is a bonus. BAM could also offer share buyback 2:1 for example.  I used to to own Enbridge income fund and ENB bought it back and offered share exchange plus small cash per share. May be similar play could in store here. 

[2cheaky]

Got down close enough to my $12 ish at $12.28 as a low,im taking a dabble here with 50% position at $12.35, if my train of thought is correct we should hit early next week to $13.62 area and then collapse, lets seee what Mr market brings next week, this is a purely tech. play, not looking at the fundaments until the report.GL Have a great weekend, stay safe...

[THEMILLION]

I enjoy your technical analysis on this stock 2cheaky.  Its really great to day trade if you are on the rights side of the trade.  Lots of price fluctuations in a day makes this tradeable. TM

[SargeX]

Hey Born My wife and I owned ENF as well and basiclly made ~$25k with some selling ENF, buying ENB and then the conversion for the rest.  Obviously, we were pleased with that especially because I thought it was a good move on Enbridge's part. We won't be able to say the same if BPY gets taken over by BAM at $15 as our average buy prices is a whooping $28.33. It sure hasn't

[born2trade]

You made a killing on ENF . That was shareholders   friendly deal. In my view, if BAM does buyout , it will keep BPY long term shareholders interest in mind. Likely scenario is BAM would try to fix BPY first and if the stock price doesn’t recover in next 8 to 10 months then may go for buy out. BPY should  recover fast if uncertainties with lockdown etc go away. Good luck. 

[Robman1]

Thanks but my question is more on the valuation. If they set the price at $15 what opportunity is there to push the price up

[Jsboutin]

[Jsboutin]

The minority shareholders (BAM is the majority shareholder) would have to accept the bid in a majority vote, so there is some protection there. BAM couldn't just bid 10$ per share and be done with it by voting with the shares they hold, for example. I suspect they would try to sweeten the deal back to at least last year's SIB of 21$/share. I could see BAM proceeding at 30% before NAV

[Capharnaum]

This is what I expect if it happens, with offering BAM shares instead of cash. Accretive to BAM shareholders, keeps the Brookfield name intact and don't have to spend a penny.