Prologis Proposes To Acquire Duke Realty In All-Stock Deal Valued At $61.68/Shr

Logistics real estate firm Prologis, Inc. (PLD) on Tuesday sent a letter to James Connor, Chairman and Chief Executive Officer of Duke Realty Corp. (DRE), proposing to acquire Duke Realty in an all-stock transaction.

Under the terms of the proposal, Duke Realty stockholders would receive 0.466 shares of Prologis common stock for each share of Duke Realty common stock they own. Prologis' proposal is valued at $61.68 per Duke Realty share, based on Prologis' closing price on May 9, 2022, and represents a premium of 29% to Duke Realty's closing price on the same date.

Following personal dialogue between the executive teams, Prologis first sent a letter to Duke Realty on November 29, 2021 regarding a potential transaction at an exchange ratio of 0.465, representing a 20% premium to Duke Realty's stock price at the time.

Over the past five months, Duke Realty has not substantively engaged while the implied premium of Prologis offer has steadily increased.

On May 3, 2022, Prologis modestly increased the proposed exchange ratio, representing a 34% premium to Duke Realty's stock price at the time, in a final attempt to engage privately to reach agreement on a mutually beneficial transaction. Duke Realty rejected the Prologis proposal that same evening.

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