- Segro's board reversed its previous rejection of Prologis's £14bn bid, indicating a willingness to accept the offer.
- Segro stated it was minded to recommend the £14bn offer to shareholders, as confirmed in a statement.
- Prologis's revised proposal offered 0.092 new shares for each Segro share, valuing the UK company at £10.32 per share, which is a 3.9% increase from its previous proposal.
- Segro shares rose 25½p, or 2.9%, to close at 895p after the new bid emerged.
- Prologis had until 5pm UK time on Wednesday to announce a firm intention to make an offer or walk away, known as a “put up or shut up” deadline under the UK’s takeover code.
- Norges Bank Investment Management, one of Segro's major investors, urged the company to engage with Prologis, which contributed to the board's change of heart.
- Prologis's cash-and-shares proposal is 14% above the most recent estimate of Segro’s portfolio value and £500 million more than its previous offer.
- Segro has roots dating back to 1920, originally known as the Slough Trading Company, and now owns approximately £12 billion of warehouses and data centres across the UK and Europe.
Prologis has sweetened its takeover offer for Segro to £14 billion, leading Segro's board to express a willingness to recommend the bid to shareholders. This revised proposal, which values Segro shares at £10.32 each, represents a 3.9% increase from Prologis's previous offer.1459
The board's change of heart follows pressure from major investor Norges Bank Investment Management, which holds significant stakes in both companies. Norges urged Segro to engage with Prologis, recognizing the strategic rationale for a merger. Prologis's latest offer includes a 25% cash element and a commitment to maintain a secondary listing on the London Stock Exchange, which has swayed some Segro shareholders.7
Prologis had until 5pm UK time on Wednesday to make a firm offer or withdraw, a deadline that has now been extended by three weeks. The Takeover Panel granted this extension to allow Prologis to conduct final due diligence. Prologis CEO Dan Letter stated, “There is no doubt a combination of both companies would deliver meaningful value.”
Segro, which has roots dating back to 1920, owns approximately £12 billion worth of warehouses and data centers across the UK and Europe. The company had previously rejected Prologis's offers, citing concerns over timing and valuation, but the latest proposal is seen as a significant improvement.
As the situation develops, both companies are poised to capitalize on the growing demand for logistics and data center space, particularly in light of the booming AI industry.
“The proposal values Segro at £10.32 per share, a 3.9% increase from its previous bid and a 14% premium over Segro's portfolio value. The Takeover Panel extended the deadline to 12 August, and Norway's Norges Bank, with an 8.3% holding, had urged Segro to engage.”
The Guardian
The Times
