Overview
- Prologis has lodged a “best and final” proposal that values Segro at £10.32 a share and offers 0.0920 Prologis shares per Segro share plus £3.5bn in cash while asking Segro to extend the timetable before a 5pm City takeover deadline on July 22.
- Segro’s board has already unanimously rejected earlier approaches, including a July 16 cash-and-stock offer worth about £13.5bn, calling the bids opportunistic and insisting the company can deliver better value on its own.
- Large institutional holders including Norges Bank, which owns about 8.3% of Segro, and APG have urged both companies to hold constructive talks so shareholders can properly assess the revised proposals.
- The dispute turns on how to value Segro’s long-dated development pipeline and data-centre assets, with Prologis warning those projects are risky and overvalued and Segro defending its standalone strategy.
- Segro’s share price has jumped roughly 21% since Prologis’ initial approach, the deal would leave existing Segro holders with about a 9.2% stake in Prologis, and Prologis has said it would consider a secondary London listing to reassure UK investors.