On Mar 4, Institutional Shareholder Services is recommending that unitholders of ARA LOGOS Logistics Trust to vote in favour of resolutions put forward in the trust scheme. These resolutions are to vote for a change in the trust deed, and secondly to vote for the scheme, that is to merge with ESR-REIT.
Karen Lee, CEO of ALOG’s manager says that the proposed transaction is not a sale process of ALOG or its assets. “ALOG Unitholders are not selling out their units, but instead rolling over into an enlarged platform with a strong sponsor, while crystalising part of their investment returns in cash. The enlarged platform with access to the sponsor’s new economy pipeline will create unparalleled and long term sustainable value for our unitholders,” she has said on a number of occasions.
Lee adds that since the proposed merger was announced in October last year and no other offer has emerged. ALOG’s manager is required to consider any offer that comes along after the ESR-REIT offer. The ESR-REIT offer is a result of the merger between ESR Cayman and ARA Asset Management. ARA had a controlling stake in LOGOS, ALOG’s sponsor. Hence ESR inherited LOGOS and now indirectly owns ALOG’s manager and around an 11% stake in ALOG.