ProLogis prolongs tender offer for ProLogis European Properties units

By Jennifer Chiou

New York, May 3 - ProLogis announced that the tender period for ProLogis European Properties' perpetual convertible preferred units will now end on May 11, extended from May 6, in order to allow for further participation.

On April 28, the company said that when combined with its current holdings, the tenders received at that point would give it 68% of ProLogis European's perpetual preferreds once the offer settles.

The company began a mandatory tender offer for the outstanding ordinary units and convertibles it does not own in ProLogis European on April 22. Settlement is now expected to occur on May 18.

Using the April 28 tender figure, upon settlement, ProLogis will own 7,015,856 convertibles and 74,122,391, or 39%, of ProLogis Europeans' ordinary shares.

As reported, 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.

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.

ProLogis already said it 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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