US logistics giant Prologis has made a “best and final” £14bn (€16.4bn) bid to acquire Segro, sweetening its terms after the UK REIT rejected three previous approaches for failing to “appropriately reflect” its value.
The NYSE-listed firm’s revised proposal values Segro at 1,031.7p per share, representing a 39% premium to its pre-offer price, and introduces an increased cash element of up to £3.5bn alongside 0.0920 new Prologis shares for each Segro share.
This compares with the third proposal of 0.0890 new Prologis shares for each London-listed Segro share, which included a lower partial cash alternative of up to £2.7bn, representing 20% of the total consideration.
Prologis said it believes the “best and final proposal provides a compelling opportunity for both sets of shareholders” and urged Segro investors to encourage their board to recommend the combination.
The firm has also asked Segro to request an extension from the Takeover Panel past today’s 5pm UK deadline to allow time to finalise the transaction.
Dan Letter, CEO of Prologis, said: “There is no doubt a combination of both companies would deliver meaningful value. We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the Segro board. We run Prologis with discipline and this is our best and final offer.”
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