On Jan 15, Institutional Shareholder Services (ISS), a proxy advisory service, wrote that it is advising unitholders of ARA LOGOS Logistics Trust (ALOG) to vote against two resolutions tabled in an EGM scheduled for Jan 27 at 3pm.
ISS says unitholders should vote against the trust deed amendment and the merger. Although the business rationale for the merger is reasonable, most of the benefits accrue to ESR-REIT, ISS reasons. ESR-REIT’s offer does not provide a compelling valuation for ALOG’s unitholders. A robust sale process may offer a better price, ISS suggests. Hence, unitholders should vote against the merger because of a lack of a robust sale process.
Karen Lee, CEO of ALOG's manager says, “nothing is preventing a competing offer. All the terms are open for anyone to put in a competing bid. From our point of view, we’ve never said this was an exclusive deal. Nothing is stopping another REIT or sponsor from putting in another bid. Although we’ve put this to the public no one has come forth.”