According to analysts at MDK Global Advisors, the international warehouse operator, ProLogis, has agreed to merge with U.S. competitor AMB Property Corporation and create a firm that will manage assents of USD 46 billion.

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MDK GLOBAL ADVISORS SAYS AMB AGREE TO $14.2BN MERGER WITH PROLOGIS
According to analysts at MDK Global Advisors, the international warehouse operator, ProLogis, has agreed to merge with U.S.
competitor AMB Property Corporation and create a firm that will manage assents of USD 46 billion.
The all-stock "merger of equals" would create a USD 14.2 billion company that will be dominant in the building and operating of
industrial warehouses, usually used by logistics operators, freight companies and retailers transferring products to outlets.
"The combined portfolio includes about 600sqm of distribution facilities situated in gateway markets and logistics corridors in 22
countries. With a market value of USD 8.7 billion, ProLogis has a presence in 105 markets in 19 countries and AMB, estimated at
USD 5.5 billion, works in 48 markets in 15 countries,” said Su Tai, Research Director at MDK Global Advisors.
Both companies have strong businesses in the U.S. and Canada, with ProLogis better known in markets in Europe and the U.K. Still,
AMB is bringing more sophisticated operations in developing economies such as Brazil and China.
The management of the business, which will maintain the ProLogis brand name, said that the acquisition was timed to coincide
with the rise in global demand for distribution warehouses. During the financial crisis, the two firms saw demand decline for their
properties, but the industry recovered by the end of 2009.
The business will be run jointly until 2012 by AMB chief executive, Hamid Moghadam, and ProLogis chief executive, Walter
Rakowich, when Mr Rakowich retires, and Mr Moghadam takes over the leadership. Mr Moghadam said this would create an
unrivalled business in any sector of the global real estate industry.
"This is absolutely a merger of equals. We are on the brink of a significant turnaround in the global market." Mr Rakowich added
that given the scale of the global market, there were no competition concerns even in relation to the consolidated portfolio.
"Each share in ProLogis will be transferred into 0.4464 of a newly issued stock in AMB. Former ProLogis stockholders will hold
about 60% of the merged company's equity on a pro forma basis, while former AMB stockholders will own 40% based on the
exchange ratio. Shares in ProLogis and AMB all increased strongly last week as reports of the negotiations broke out,” commented
an Executive Researcher at MDK Global Advisors.
The merger of the two leading industrial real estate investment trusts would result in annual cost savings of about USD 80 million,
which are expected to happen in the 18 months following the deal.
The deal will be the largest since the Equity Office Properties Trust was acquired by Blackstone's for USD 39 billion in 2007. The
merger, which is subject to approval by shareholders, is scheduled to close in the second quarter. Morgan Stanley served as
ProLogis' financial adviser. JPMorgan Securities served as financial adviser to AMB.
PRESS RELEASE
TAIPEI, TAIWAN | 01 FEBRUARY 2011