[ad_1]
Prologis, Inc . (NYSE: PLD) and Duke Realty Corp. (NYSE: DRE) said June 13 that Prologis will acquire Duke Realty in an all-stock transaction, valued at approximately $26 billion, including debt.
In a conference call, Prologis Co-founder, CEO and Chairman Hamid Moghadam said the transaction “makes great sense from a long-term growth perspective…we feel really good about this.”
The announcement comes on the heels of an offer from Prologis in May to acquire Duke Realty for nearly $24 billion, which Duke Realty rejected.
Under the terms of the agreement, Duke Realty shareholders will receive 0.475x of a Prologis share for each Duke Realty share they own. The transaction is currently expected to close in the fourth quarter of 2022. The respective board of directors for Prologis and Duke Realty have unanimously approved the transaction.
Moghadam praised the “disciplined repositioning strategy” carried out by Duke Realty over the last decade. “They have built an exceptional portfolio in the U.S. located in geographies we believe will outperform in the future.”
Duke Realty Chairman and CEO Jim Connor, who will join the Prologis board, said that after a “deliberate and comprehensive evaluation of the transaction and the improved offer, we are excited to bring together our two complementary businesses.”
Connor said that together the two REITs will be able to “accelerate the potential of our business and better serve tenants and partners. We are confident that this transaction—including the meaningful opportunity it provides for shareholders to participate in the growth and upside from the combined portfolio—is in the best long-term interest of Duke Realty shareholders.”
The transaction is anticipated to create immediate accretion of approximately $310-370 million from corporate general and administrative cost savings and operating leverage as well as mark-to-market adjustments on leases and debt.
[ad_2]
Source link
