By Gabriel Araujo

SAO PAULO (Reuters – Aliansce Sonae, a Brazilian shopping mall operator, announced on Tuesday it made a fresh offer to tie up with rival BR Malls. The latter then authorized its management for talks about the terms.

Aliansce claimed that the new offer offered a better exchange ratio to BR Malls’ shareholders.

Although BR Malls had rejected the firm’s previous two proposals this year, it signaled that it would still be open to discussions on a business combination if these reflected its “fair worth.”

Aliansce Sonae will pay 1.25 billion reais (or $268.66m) to BR Malls shareholders and give them 326.339.911 shares.

It noted that this would be an exchange ratio between one share of BR Malls and 0.3940 shares issued by Aliansce Sonae.

This offer was previously made with 1.85 billion reais in cash and 276,762,914 shares from Aliansce Sonae. The exchange ratio between one BR Malls Share for 0.3341 Aliansce shares was 1 BR Malls Share.

BR Malls received the bid and stated in a separate file that, “given new economic terms of this offer,” it had authorized its board to meet with representatives from Aliansce to discuss the proposals and the draft documents for presentation to a shareholder meeting.

According to it, the proposed new exchange rate of Aliansce would provide BR Malls with 55.2%.

“Considering April 18’s closing price, the new offer offers an approximately 18% increase compared with the January 4 exchange ratio,” BR Malls stated.

Refinitiv Eikon data indicates that BR Malls is currently valued at 7.24 Billion reais. Aliansce Sonae, however, has a value of 5.63 Billion reais.

Aliansce has the support of Canada Pension Plan Investment Board, (CPPIB), and ECE founder Renato Ricci as its major shareholders. BR Malls on the other side has a much more diverse ownership.

($1 = 4.6528 reais)