ESR-REIT and ALOG unitholders approve ELOG formation
The merger will be done by way of a trust scheme arrangement.
Unitholders of ESR-REIT and ARA LOGOS Logistics Trust (ALOG) have approved the merger of the two companies.
The merger will be done by way of a trust scheme of arrangement to form E-LOG which will focus on New Economy and Future-Ready APAC S-REIT.
Approximately 98.6% of the votes from ESG-REIT units were in favour of the union, while 62.9% of the ALOG unitholders approved the merger.
Other proposals approved were the issuance of new ESR-REIT units to ALOG unitholders at an issue price of $0.4924 for each ESR-REIT unit as part of the consideration for the merger; and amendments to the ALOG Trust Deed that will facilitate the implementation of the merger.
The first proposal was approved by 98.4% of ESG-REIT unitholders, while the second ordinary resolution was okayed by 94.8% of ALOG unitholders.
ELOG, which is backed by ESR Cayman Limited, is expected to be “amongst the top 10 largest S-REITs by free-float market capitalisation and have greater representation on the FTSE EPRA Nareit Global Developed Index,” according to Karen Lee, CEO of the ALOG Manager.