Merger that creates Brazil’s largest shopping mall company is approved by shareholders

The shareholders of the shopping center company brMalls approved this Wednesday (8) the merger with rival Aliansce, which will give rise to the largest mall manager in the country.

The announcement of the agreement between the companies had been made on April 29, but was still awaiting the approval of shareholders.

Both companies, listed on the stock exchange, have not yet disclosed a material fact, as is common in this type of operation. The document will be released later today, after Aliansce’s shareholders’ meeting, which is taking place at this time, in which the agreement must also be approved, according to people interviewed by Sheet.

The deal provides for the shares of brMalls to be merged into Aliansce.

Among the shopping centers managed by brMalls are the malls Metrô Santa Cruz, Jardim Sul, Villa-Lobos and Mooca Plaza Shopping, in São Paulo. Among those managed by Aliansce are Parque D. Pedro and Plaza Sul.

After having two previous offers rejected, Aliansce made public in March a third proposal for the business combination, which it classified as having a “exchange ratio more favorable to the shareholders of brMalls”.

Under the proposal, brMalls shareholders were offered a cash payment in the amount of R$1.25 billion, corresponding to R$1.50 per brMalls common share, in addition to a payment with the delivery of 326.3 million shares of Aliansce, representing 55.13% of the combined company’s share capital.

Shopping malls were one of the sectors hardest hit by the pandemic. In 2020, they were the equivalent of eight months closed, counting the periods of restriction. The new waves of contagion in 2021 also impacted operations. In 2022, after the omicron boom in January, the pandemic appears to be under control.

But there are still the typical pressures of an election year on the macroeconomy and bad economic indicators, such as inflation, falling incomes and high unemployment.