Brookfield Asset Management Inc. has offered US$5.9 billion to buy the remaining stake in Brookfield Property Partners LP that it does not already own.
The company is offering US$16.50 per unit.
Under the offer, Brookfield Property unitholders will have the option to receive payment in cash, Brookfield shares or Brookfield Property Partners preferred units, within certain limits.
The maximum cash available under the proposal is US$2.95 billion.
Brookfield Property units closed at US$14.47 on the Nasdaq in the U.S. and C$18.41 on the Toronto Stock Exchange on Dec. 31.
Brookfield Property Partners says it has established a committee of independent directors to review and consider the proposal.
Brookfield Asset Management chief financial officer Nick Goodman says the deal would give Brookfield greater flexibility in operating the portfolio and realizing the value of its high-quality assets.