Johannesburg - Simon Property Group (Simon), which owns 5% of Capital Shopping Centres Group (CSO), on Wednesday proposed buying out Capital at 425 pence per share in cash.
The submission was made to the board of Capital and caps a running dispute over Capital's acquisition of the Trafford Shopping Centre in the UK from the Peel Group.
As part of the Trafford deal, Peel would acquire a 25% stake in Capital, which Simon is opposed to.
Wednesday's offer is an attempt to scupper Peel's acquisition of the stake in Capital.
In a letter to the Capital board, Simon said: "We believe that our proposal provides a full and fair premium valuation to CSC (Capital Shopping Centre) shareholders.".
A cash offer of 425 pence per CSC share would represent a premium of 26% to CSC's closing share price of 337 pence immediately prior to the commencement of the offer period on November 24 2010.
It said this represents a premium of 21% to CSC's average daily closing price over the six-month period prior to commencement of the offer period - a premium of 16% to the blended share price of 367 pence at which CSC is proposing to issue 25% of the company's shares to Peel to fund the acquisition of the Trafford Centre.
Simon added that a cash offer represents a premium of 13% to CSC's diluted net asset value per share of 377 pence as of November 1 2010; and a premium of 7% to CSC's closing share price of 396 pence on December 14 2010, the day before the date of its letter to the Capital board.