Proxy advisor recommends a vote for merger between ALOG and ESR-REIT

Goola Warden
Goola Warden3/5/2022 04:12 PM GMT+08  • 3 min read
Proxy advisor recommends a vote for merger between ALOG and ESR-REIT
Proxy advisor sees merits of ALOG and ESR-REIT merger, and recommends ALOG unitholders vote for the merger
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

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.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now