GE Capital's Commercial Real Estate Business unit reports, that if the merger is completed, Security Capital Group shareholders will be entitled to receive cash and 0.23 ProLogis common shares for each share of Class B stock of Security Capital they hold, so that the value of the cash/stock will equal $26. The ProLogis shares will be valued based on the average daily closing prices for the ProLogis common stock reported on the New York Stock Exchange for the 10-day trading period of April 26 –May 9. Holders of Class A stock of Security Capital will receive 50 times the per share Class B consideration, company officials say.
After the merger is complete, the merged company will retain approximately 9.8% of the outstanding common shares of ProLogis Trust.
Officials close to the deal report that the transaction is expected to be valued at approximately $4 billion. Security Capital Group has scheduled a special meeting of its shareholders in Chicago on May 14 to give the deal a thumbs up or thumbs down.
The proposed purchase of Security Capital was announced on Dec. 14 and, if approved, will give GE Capital a foothold in the self-storage, parking and grocery-anchored retail sectors. Security Capital has offices in Brussels, Chicago, El Paso, Houston, London, Luxembourg, New York and Santa Fe. The two firms had originally hoped to close on the transaction during the first quarter of this year.
If the purchase of Security Capital Group is approved, GE Capital, which has assets of $425 billion, will have ownership interests in: Storage USA, an owner and developer of self-storage facilities; Regency Centers, an owner and developer of grocery-anchored retail shopping centers and InterPark, a manager and owner of parking facilities. Also included in the deal would be entities involved in senior assisted living communities, real estate investment and advisory services, as well as a company engaged in public parking, self storage and office facilities in Europe.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
