US listed firms Prologis and AMB Corporation have agreed what they describe as a 'merger of equals'. The combined global industrial property specialist will have a pro forma equity market capitalisation of $14 bn (EUR 10 bn and about $46 bn (EUR 34 bn) of assets under management.
US listed firms Prologis and AMB Corporation have agreed what they describe as a 'merger of equals'. The combined global industrial property specialist will have a pro forma equity market capitalisation of $14 bn (EUR 10 bn and about $46 bn (EUR 34 bn) of assets under management.
Under the terms of the agreement, each Prologis common share will be converted into 0.4464 of a newly issued AMB common share, and the combined company will be an UPREIT. The merger is subject to customary closing conditions, including receipt of approval of AMB and Prologis shareholders.
The parties expect the transaction to close during the second quarter of 2011. The all-stock merger is intended to be a tax-free transaction. Upon completion of the merger, the company will be named Prologis and will trade under the ticker symbol PLD (NYSE).
The combined portfolio encompasses 56 million m2 of modern distribution facilities located in key gateway markets and logistics corridors in 22 countries. Both companies have substantial portfolios in North America, Western Europe and Japan. Prologis is well-established in the UK and CEE, and AMB has a significant presence in China and Brazil.
'This merger is about two great companies coming together to create a stronger platform for sustainable value creation and growth. By joining forces, this merger will create a company positioned to be the leading global provider of logistics real estate - a Blue Chip REIT,' said AMB CEO Hamid Moghadam.
