Proxy advisory says ALog-ESR deal process 'questionable', recommends voting against merger

PROXY advisory firm Institutional Shareholder Services (ISS) has recommended that unitholders of Ara Logos Logistics Trust (ALog Trust) K2LU vote against the merger with ESR-Reit J91U at an extraordinary general meeting (EGM) to be held on Jan 27.

ESR-Reit and ALog Trust had in October 2021 proposed to merge in a S$1.4 billion deal.

"From a process perspective this related party deal is questionable, as ALog Trust is not controlled and could have, if seeking an exit or increase in size, shopped around for alternative transactions. Instead, the independent committee was satisfied with negotiating one-on-one with the ESR-Reit manager," ISS said in the report.