Denver-based Prologis has launched a mandatory cash tender offer of EUR 6.10 per unit for all the outstanding units in the fund it does not already own in Euronext-listed fund Prologis European Properties (PEPR). The bid values Europe's biggest warehouse owner at EUR 1.2 bn, beating an earlier offer of EUR 6 made by Algemene Pensioen Groep (APG) of the Netherlands and the Goodman Group of Australia.

Earlier Prologis rejected the APG-led offer and raised its stake in PEPR to around 38% ahead of launching its counterbid.

In a statement on Friday, Prologis announced that the offer price represents a 22% premium over the PEPR share closing price on Euronext on April 12, 2011, the day before APG mounted its offer. It also marks a 27% premium over the volume weighted average price in the preceding six months. Separately, Prologis said it will offer each PEPR convertible preferred unitholder an 'appropriate' cash consideration, which will be further detailed in the offer document.

The acceptance period runs until May 6, 2011.

'With this unconditional offer, Prologis is providing all PEPR unitholders who wish to monetize their investment an opportunity to sell their units at a compelling price with certainty and speed of outcome,' said Prologis CEO Walter C. Rakowich.