Simon Property Group Inc., the biggest U.S. mall operator, will cut its purchase price for an 80 percent stake of rival Taubman Centers Inc. by 18 percent, both companies said on Sunday, as the coronavirus upends the retail industry sector, Reuters reported. The agreed discount comes as the two companies settled a legal dispute over the transaction, which Simon had previously threatened to walk away from, citing the hit to the industry from COVID-19. Under the revised terms, Simon will pay $2.65 billion for the 80 percent stake in the Taubman Realty Group (TRG), cutting its offer price to $43 per share in cash from $52.50 originally announced in February. The Taubman family will sell about one-third of its ownership interest at the transaction price, leaving them with a 20 percent stake in TRG, the companies added. The companies said they also have settled their pending litigation in a Michigan court over the merger and the companies expect the deal to close later this year or early next year.
