Following the announcement on 15 October 2021 for the proposed merger of ESR-REIT (“ESR”) with ARA Logos Logistics trust (“ALog”) to form the new “ESR-LOGOS REIT”, the market sentiment for the merger was tepid. Many investors took the view that the terms of the merger were unfavourable to ALog’s unitholders as the offer implies a discount against the last traded share price for ALog’s units. The proxy advisor even recommended that ALog’s unitholders vote against the merger based on the original offer. The initial offer was NAV & DPU accretive for ALog unitholders while it was DPU accretive and NAV dilutive for ESR unitholders. However, investors took the view that the merger benefited ESR unitholders more as compared to ALog unitholders. This was mainly because the offer was a small premium to the last traded price before the offer. In addition, the offer only looked like a premium because the ESR units to be issued to ALog’s unitholders  ...