EUROPE - Dutch asset manager Algemene Pensioen Groep (APG) and an affiliate of the Government of Singapore Investment Corporation (GIC) have agreed to sell their stakes in ProLogis European Properties (PEPR) after ProLogis improved its offer to buy all remaining shares in the listed real estate fund.
ProLogis has agreed to purchase all ordinary units and convertible preferred units of PEPR currently held by APG and GIC for €6.20 per unit, which would give ProLogis a majority stake of approximately 60%.
ProLogis has extended the €6.20 offer to all remaining unit holders in a bid to assume full ownership.
The news follows last week's rejection by the management of PEPR of ProLogis's offer to buy remaining units in the fund for €6.10, and comes several weeks after a group led by APG and Goodman Group attempted to take 100% ownership by offering €6.00 per unit.
APG, which had wanted to take the fund private and replace ProLogis with Goodman Group as fund manager, said in a statement it had agreed to the latest offer from ProLogis.
"As a result, APG confirms that the APG and Goodman-led consortium will not be submitting any further proposals to acquire any or all PEPR units," it said.
"Taking into account the unique circumstances and history of PEPR as an externally managed listed fund, APG is pleased with this outcome and believes accepting PLD's revised, higher cash offer is in the best interest of APG's clients."
ProLogis said its latest offer represented a 24% premium over the unaffected closing price on Euronext Amsterdam of PEPR ordinary units on 12 April.
It also said unit holders that had already tendered their units would be paid the higher offer price at the closing of the acceptance period, which has been extended to 6pm (CET) on 18 May.
Walter Rakowich, chief executive at ProLogis, said: "At the increased price, two of PEPR's significant investors today have chosen to sell their units.
"ProLogis remains committed to its European platform and strongly believes the successful completion of its tender offer is in the best interests of both PEPR and ProLogis investors and provides all PEPR unit holders with substantial, certain and immediate value."