Prologis is proposing to buy fellow NYSE-listed industrial real estate investment trust Duke Realty in a $24bn (€22.8bn) deal.
Prologis said on Tuesday that it is offering Duke Realty stockholders $61.68 for each share held, an amount which represents a premium of 29% to Duke Realty’s last closing price.
Duke Realty shares closed last night at $49.58, valuing the company at $19.1bn.
Prologis is proposing to offer Duke Realty shareholders an exchange ratio of 0.466 shares of Prologis common stock for each share of Duke Realty common stock they own.
The latest offer follows an initial proposal Prologis made in November last year and a subsequent increase to the offer last week which was rejected by Duke Realty.
Prologis – which has a $93bn market capitalisation – owns or has investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects expected to total approximately 1bn sqft in 19 countries. Duke Realty has approximately 160m sqft of industrial assets in 19 key US logistics markets.
“We are confident that the proposed combination will be a win-win for our respective shareholders,” said Prologis CEO and co-founder Hamid R Moghadam.
“We are known for providing exceptional service to customers and delivering superior value for our shareholders, including the shareholders of companies we have merged with or acquired in the past, Moghadam said.
“We have no doubt that Duke Realty’s shareholders would similarly benefit from long-term value created by the combination of our companies.”
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