Segro has agreed to a recommended £14bn (€16.3bn) takeover by Prologis following a fourth proposal from the US industrial real estate giant.
Last month, Prologis made a ‘best and final’ offer for Segro, its fourth attempt in just over a month following weeks of rejections. The move led Segro’s board to announce that the terms were at a level it would be “minded to recommend” to shareholders.
UK real estate investment trust (REIT) Segro had rejected a third revised £13.5bn takeover bid from Prologis, but had said that it would be willing to engage further should Prologis submit an improved offer that “appropriately reflects” its value.
The month prior, NYSE-listed Prologis had called on Segro shareholders to encourage their board to engage in discussions regarding a takeover bid, following the rejection of an initial £12.6bn offer.
Prologis’s best and final £14bn proposal of 0.0920 new Prologis shares for each Segro share, values Segro at 1,031.7p per share, representing a 39% premium to undisturbed prices. The proposal includes a partial cash pool of up to £3.5bn, representing 25% of total consideration.
Including permitted dividends, such as the expected 2026 final dividend of up to 22.56p, total realised value reaches up to 1,054.3p per share. Additionally, Prologis contractually committed to establishing a secondary listing on the London Stock Exchange.
Segro’s directors unanimously intend to recommend the combination, which will be executed following the sanction of the scheme by the court.
The deal would grant shareholders of London-listed Segro a 10.5% stake in a combined company boasting a $141bn market capitalisation, forming the world’s largest logistics real estate platform.
Daniel S Letter, CEO of Prologis, said: “This deal brings together Segro’s exceptional portfolio and customer relationships with Prologis’ global platform, operating expertise and financial strength.
“We have great respect for Segro, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead. As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders.”
David Sleath, CEO of Segro, said: “We believe the combination would bring together two highly complementary businesses and create a compelling platform, combining Segro’s exceptional portfolio and development pipeline with Prologis’ existing European business and global scale, customer franchise and operational capabilities, while retaining a shared commitment to disciplined capital allocation, customers and people.
“Prologis’ proposal provides Segro shareholders with a compelling opportunity to realise the value created by Segro and benefit from the future growth of the combined group.”
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