– As a result of the merger, two great companies have created an even more powerful global company operating in the industrial real estate market – said Hamid R. Moghadam, Chairman and Co-Chief Executive Officer of the new entity. – We are enthusiastic about embarking on the implementation of a strategy aimed at leveraging the company’s growth opportunities worldwide, thanks to an excellent portfolio of logistics properties, experience in private capital placement, strong financial health, and outstanding personnel.
– The future of ProLogis looks very bright – said Walter C. Rakowich, the other Co-Chief Executive Officer. – Thanks to an unrivaled global real estate network, an outstanding board, and a competent management team, we will continue to deliver products and services of excellent quality to our customers, enable professional development for our employees, and ensure profitability worthy of a leader, in accordance with the promise made to our shareholders.
As a result of the merger, each existing share of ProLogis common stock was converted into the right to receive 0.4464 of a newly issued common share of the combined company. Each share of AMB common stock remains one common share of the combined company. Former holders of ProLogis common stock own approximately 60 percent of the combined company’s common stock, and the stake of former AMB common stock holders is approximately 40 percent. The transaction will result in synergies and an immediate accretion to book value. By the end of 2012, expected savings in general and administrative costs should amount to 80 million USD annually. The company anticipates that a lower cost of capital – combined with greater financial flexibility and presence in more markets – will result in opportunities for higher revenues and more effective fulfillment of customer needs.
– The completion of the merger is a significant achievement. I would like to thank our colleagues around the world for the tremendous amount of work they have contributed to making this transaction a success – said Hamid Moghadam. – The long-term success of any merger depends on the employees. I believe in the future of this company because we are fortunate to have the best team in the industry.
The company’s headquarters will be located in San Francisco, while the operational headquarters will be in Denver. The new company will have a UPREIT (Umbrella Partnership Real Estate Investment Trust) structure.