Prologis European Properties (PEPR) has announced that it has postponed the Extraordinary General Meeting (EGM) called for 30 September 2009, and will consult investors prior to reviewing alternative capital raising plans with its board.
Prologis European Properties (PEPR) has announced that it has postponed the Extraordinary General Meeting (EGM) called for 30 September 2009, and will consult investors prior to reviewing alternative capital raising plans with its board.
The EGM was initially called by PEPR for the purpose of approving the conversion of its legal structure from a fonds commun de placement (FCP) into a société d’investissement à capital fixe (‘SICAF’) and to modify and modernise several elements of its corporate governance.
'While the overwhelming majority of proxies received to date were in favour of the conversion, PEPR and its advisors have elected to postpone the EGM in order to better understand objections raised by a minority of unit holders through follow up discussions,' PEPR said.
Earlier this month, Dutch pension fund APG raised objections to the proposed conversion of into a SICAF, arguing it would lead to additional financial risks. APG believes PEPR's corporate governance structure needs to be amended first and earlier this month urged PEPR to make the necessary changes. The pension fund believes it should be possible for shareholders to dismiss the fund manager, US-based Prologis, ‘without case at any time’. That is not currently possible. APG holds a 12% stake in PEPR and is the second-largest shareholder after Prologis with 25%.
