Segro board reverses stance, open to £14bn Prologis takeover
6 reported
The board of UK warehouse landlord Segro has reversed its earlier position and stated it would be willing to accept a £14bn takeover bid from US rival Prologis. The announcement came nearly a month after Segro rejected an initial £12.6bn approach and two subsequent offers. Prologis’s revised proposal values Segro at £10.32 per share, a 3.9% increase over its previous offer and 9.5% above its initial June approach. The deal would be one of the largest foreign takeovers of a UK-listed company. Prologis had faced a Wednesday 5pm deadline to announce a firm intention or walk away, but this has been extended by three weeks to August 12. Segro’s reversal followed a call from major investor Norges Bank Investment Management urging engagement with Prologis.
What’s reported
Segro’s board unanimously concluded it would recommend shareholders accept Prologis’s “best and final offer.”
The revised proposal offers 0.092 new Prologis shares per Segro share, valuing Segro at £10.32 per share.
This represents a 3.9% increase over the previous proposal and a 9.5% increase above the initial June approach.
Prologis had a “put up or shut up” deadline of 5pm UK time on Wednesday, now extended to 5pm on August 12.
Norges Bank Investment Management held a 1.3% stake in Prologis and an 8.3% stake in Segro at the end of June.
Segro rejected previous Prologis bids dating back to March 2024, calling the initial offer “opportunistically timed.”
Key figures
David Sleath, long-serving chief executive of Segro
Norges Bank Investment Management, major investor in both Segro and Prologis
Sources: The Guardian
