The boards of SEGRO and Prologis have agreed final terms on the US warehousing giant’s takeover of the UK REIT that values the company at around £14.3bn.
David Sleath, CEO SEGRO
The terms of the recommended share offer, with a partial cash alternative, values each SEGRO share at 1,031.7p, rising to 1,054.3p including a final dividend SEGRO Shareholders will be entitled at the end of the year.
The takeover will be completed in the first half of next year, with SEGRO shareholders receiving 0.92 Prologis shares for each SEGRO share, with a partial cash alternative of £3.5bn.
The agreement seals a long-running takeover process involving some bitter exchanges between the companies, before SEGRO’s board said it would support the US firm’s fourth and final offer on 22 July, the original day of the deadline for the US giant to make an offer or walk away..
“This deal brings together SEGRO’s exceptional portfolio and customer relationships with Prologis’s global platform, operating expertise and financial strength,” said Daniel Letter, chief executive of Prologis.
“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.”
SEGRO chief executive David Sleath added: “Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure.
“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’s existing European business and global scale, customer franchise and operational capabilities, while retaining a shared commitment to disciplined capital allocation, customers and people.”
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