Prologis’s blockbuster £14bn acquisition of SEGRO looks set to go ahead after the UK REIT’s board announced it would recommend the combination to shareholders.
SEGRO Park Coventry
The US warehousing giant submitted a final bid this morning (22 July) consisting of 0.0920 new Prologis shares for each SEGRO share – a 9.5% increase over its initial proposal – and a partial cash alternative of up to £3.5bn.
The REIT’s board said it had “unanimously concluded that the financial terms of the final bid are at a level that it would be minded to recommend to SEGRO shareholders should a firm intention to make an offer be announced by Prologis”.
The board has also requested an extension to the date by which Prologis is required to announce a firm intention to make an offer.
Prologis has agreed to establish a secondary listing of its own shares on the London Stock Exchange on or prior to completion of the deal.
SEGRO had been coming under increasing shareholder pressure in recent days to agree terms with Prologis.
SEGRO rejected Prologis’s third takeover bid – valued at £13.5bn – last week. The UK REIT’s board had labelled Prologis’s first three bids “opportunistic, one-sided and inadequate”.
The US firm first made an offer in 2024 and claims shareholders would be 36.5% better off than today, in share price terms, if the bid had been accepted.
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