ProLogis gives results to date of tender offer for ProLogis European

By Angela McDaniels

Tacoma, Wash., April 28 - ProLogis said that when combined with its current holdings, the tenders received so far will give it 68% of ProLogis European Properties' perpetual convertible preferred units once its tender offer settles.

ProLogis began a mandatory tender offer for the outstanding ordinary units and convertibles it does not own in ProLogis European on April 22. The tender period will end on May 6, and settlement is expected to occur on May 11.

When the tenders received so far are settled, ProLogis will own 7,015,856 convertibles and 74,122,391, or 39%, of ProLogis Europeans' ordinary shares.

The price is €6.10 per unit or convertible. It represents a 22% premium over the April 12 closing unit price, a 27% premium over the volume-weighted average price of the units in the preceding six months and a 33% premium over the VWAP in the preceding 12 months, according to a company news release.

ProLogis announced plans for the offer on April 14 after it purchased about 11 million units of ProLogis European from an institutional investor, bringing ProLogis' ownership of ProLogis European to 38%.

Algemene Pensioen Groep NV and Goodman Group made an indicative non-binding proposal to acquire ProLogis' stake in ProLogis European. They had not made an offer for all ProLogis European units but had stated that a price of €6.00 per unit would represent "a compelling value proposition for all unitholders," according to a previous news release from ProLogis.

ProLogis does not want to sell its interest in ProLogis European and said the tender offer "eliminates the instability and uncertainty" created by the proposal from Algemene and Goodman Group.

JPMorgan is acting as financial adviser to ProLogis.

The tender offer document is available from RBS Global Banking (Luxembourg) SA (352 270 330-1 or corporate.actions@rbs.com) and Royal Bank of Scotland NV (00 800 3882 4743, +31 20 464 3707 or corporate.actions@rbs.com).

ProLogis European Properties is a real estate investment fund that owns distribution and logistics facilities. The company is incorporated in Luxembourg and has headquarters in London.

ProLogis is a Denver-based provider of distribution facilities.

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