Overview
- Segro has formally turned down Prologis’ latest cash-and-share proposal that would have exchanged 0.0890 Prologis shares per Segro share plus £2.7bn in cash, valuing Segro at about £13.5bn and representing roughly a 9.7% premium.
- Segro’s chief executive warned the deal would hand full control of its UK data-centre development pipeline to a buyer that would leave Segro shareholders with a smaller holding in a US-focused portfolio.
- Prologis countered that Segro’s standalone valuation is unrealistic and said Segro has understated the risks in speculative, long-dated and often un-zoned development projects.
- Market response has been muted but negative, with Segro shares down about 2% on the latest update and analysts at Stifel suggesting a negotiated price could be nearer 1,110p per share while warning a sale could harm the UK-listed real-estate sector.
- The contest looks set to continue with Prologis signalling it may press the approach and explore a London secondary listing, leaving shareholders to weigh an immediate cash-and-stock offer against the risk and upside of Segro running its development pipeline alone.