Duke Realty increases by 10% after proposed acquisition announcement

Prologis, Inc. (NYSE: PLD), a leading logistics real estate company, recently sent a letter to the Chief Executive Officer and Chairman of Duke Realty Corporation, James Connor, proposing to buy Duke in all-stock deal. This announcement saw Duke Realty stock grow by 10%.

According to the proposal, Duke’s shareholders would get 0.466 Prologis common stock shares for every Duke Realty common stock share they own. The proposal by Prologis is valued at around $61.68 per Duke share, representing a 29% premium to the closing price of Duke Realty on the same date.

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Management statements

Prologis Co-Founder and Chief Executive Officer, Hamid Moghadam, said, they’re confident the acquisition proposal will be will be beneficial to all the parties involved.

The CEO went on and said:

Prologis has a proven track record serving as a leader and innovator in our industry. We are known for providing exceptional service to customers and delivering superior value for our shareholders, including the shareholders of companies we have merged with or acquired in the past.

Mr. Moghadam said:

We have no doubt that Duke Realty’s shareholders would similarly benefit from long-term value created by the combination of our companies.

Details of letter

Based on the financial and strategic advantages in the letter, Duke Realty are confident the addition of assets to their platform will provide better value to stockholders of the companies involved.

One thing that helps set Prologis apart is their Essentials platform and substantial strategic capital business. The Essentials platform contains solutions around digital, transportation, workforce, and energy offerings that we offer to customers both outside and inside of the company portfolio.

Additionally, their track record when it comes to building value via acquisitions is very strong. The company’s acquisition of Liberty Property Trust and DCT Industrial Trust Inc benefitted the stockholders of the company’s involved in the deal.