The Merger Of Trizec Corporations And Horsham Incorporated



The real estate industry has been hit hard in the 1990s. Many companies have been struggling to maintain their position in a rapidly decreasing real estate market. The largest Canadian based real estate company to experience an accumulation of debts is, the once Calgary based, Trizec Corporations.1 Trizec Corporations is experiencing over 600 million dollars worth of outstanding debts and was near bankruptcy until the Toronto based investment group, Horsham Incorporated, invested 600 million dollars in return for 43% of the company in 1994.2 The merge between Trizec Corporations and Horsham Incorporated would benefit both companies and propel these two companies into future ...

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and Marketing Incorporated, 20% of American Barrick and real estate in Berlin.5
The proposal in 1994 had Horsham paying 500 million dollars to receive a portion of the debt that is convertible to common shares and then another 100 million dollars for additional equity. The deal put a total value of 1.2 billion dollars into debt and outstanding equity in Trizec.6 Horsham now owns 48% of Trizec and is trying to acquire 52% which was recently approved by the boards of both companies. The new company consisting of these two groups will be renamed Trizec Hahn Corporation.7 Both companies feel that the merge would benefit their future expansions because by investment from an outside source Trizec would be able to improve their position in the real estate market. The deal would also allow Trizec to keep their management in control. Horsham believes that an investment in the largest real estate market in Canada would initiate an attempt to salvage the real estate market.8 ...

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"The Merger Of Trizec Corporations And Horsham Incorporated." Essayworld.com. January 29, 2004. Accessed November 17, 2018. http://www.essayworld.com/essays/The-Merger-Trizec-Corporations-Horsham-Incorporated/2196.
"The Merger Of Trizec Corporations And Horsham Incorporated." Essayworld.com. January 29, 2004. Accessed November 17, 2018. http://www.essayworld.com/essays/The-Merger-Trizec-Corporations-Horsham-Incorporated/2196.
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PAPER DETAILS
Added: 1/29/2004 12:54:33 PM
Category: Economics
Type: Premium Paper
Words: 659
Pages: 3

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