Prologis has urged Segro shareholders to encourage their board into discussions regarding a takeover bid, following the rejection of an initial £12.6bn (€14.6bn) offer.
The proposed deal would give shareholders of London-listed Segro a 10.5% stake in the combined group that would form the world’s largest logistics real estate investment trust (REIT), with a $140.9bn (€124bn) market capitalisation.
Prologis said it sent an indicative all-share proposal to the board of Segro on 16 June, which offered 925p per share. The bid represented a 24.6% premium to the closing price on 23 June, the day the Segro board “unequivocally rejected the combination proposal”.
NYSE-listed Prologis said it believes that the combination is a highly compelling opportunity for Segro shareholders as it unlocks, on closing, “significant upside to the current share price” and provides shareholders with participation in a global platform.
Prologis said it urges Segro shareholders to encourage its board to engage in talks to allow a binding offer to be put forward for consideration.
Prologis added that there is currently no certainty a formal offer will be made.
In response, Segro said its board considered the proposal together with its advisers and believed that the proposal was opportunistically timed and sought to take advantage of the clear dislocation between Segro’s current share price and its “highly attractive underlying business and strong prospects”.
“This has been accentuated by major geopolitical issues which have adversely impacted trading valuations across the UK and European real estate sectors relative to the US REIT sector.”
Segro said that its clear strategy, strong balance sheet and robust development pipeline, including an exceptional data centre platform, leave the board highly confident in its “ability to capture substantial value for its shareholders during the coming years”.
By midday, Segro shares were trading up more than 17% at 870.91p.
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