SEGRO has rejected a third takeover proposal from Prologis, valuing the business at £13.5bn.
SEGRO Park Coventry
The US logistics property giant’s proposal comprised 0.0890 new Prologis shares for each SEGRO share – which it said valued SEGRO shares at 993p, a 6% increase on its original terms – and also included a partial cash alternative of up to £2.7bn.
The offer was turned down by SEGRO on Friday (17 July). A second undisclosed proposal had been rejected on 12 July.
Prologis also announced it made a previous offer in 2024,
which was also rejected by SEGRO’s board. Prologis claimed the 2024 proposal would have led to SEGRO’s shareholders being 36.5% better off than today, in share price terms.
The third bid is the latest in what is becoming a bitter saga between the two businesses. In response to the US warehousing giant urging SEGRO shareholders to force the board into discussions, the UK REIT put out a flurry of announcements on its ability to fulfil the potential of its land bank, including a £2.9bn industrial and logistics joint venture (JV) with PSP and a second, data centre JV with Pure.
In response, Prologis, which insists it can deliver greater returns for shareholders, said SEGRO was overly reliant on JVs.
SEGRO chairman Andy Harrison said: “The board does not believe that Prologis’s latest proposal to acquire SEGRO reflects the quality, scarcity or long-term prospects of SEGRO’s portfolio and platform and has been rejected unanimously by the board.
“The board is seeking to maximise value for shareholders and would further engage on any proposal that appropriately reflects the considerable embedded value and prospects of our business. We will continue to engage with our shareholders and remain focused on executing our clear strategy that underpins superior value creation.”
Despite the latest rejection, SEGRO met with Prologis’s management on 19 July to discuss the US firm’s bid and the possibility of improved financial terms. SEGRO said Prologis “provided no new information in this meeting and made no improvement to the further revised proposal”.
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