Prologis increases offer for SEGRO with revised share and cash proposal

Prologis (NYSE:PLD) has submitted a third revised proposal to acquire SEGRO (LSE:SGRO), valuing the UK logistics property company at approximately £13.5 billion. The latest proposal consists of 0.0890 newly issued Prologis shares for each SEGRO share, alongside a partial cash alternative of up to £2.7 billion at 1,000 pence per share. SEGRO’s board has rejected the proposal once again. If the transaction were completed, existing SEGRO shareholders would own around 9.2% of the enlarged Prologis group. The offer represents a premium of about 10% to SEGRO’s adjusted net asset value and more than 30% above the company’s share price before the approach became public.

Prologis believes its revised proposal delivers greater immediate value and flexibility than SEGRO’s standalone strategy, arguing that the company’s long-term plans depend on ambitious property valuations and the successful execution of an extended development pipeline. The U.S.-based real estate group also highlighted its strong second-quarter performance and continued expansion in its data centre and power infrastructure businesses as evidence of its growth prospects. Prologis is encouraging SEGRO shareholders to urge the board to enter discussions regarding a potential transaction, while also considering a secondary listing in London. However, the company reiterated that there is no certainty a formal takeover offer will ultimately be made.

More about Prologis

Prologis, Inc. is one of the world’s largest industrial real estate companies, specialising in logistics facilities and warehouse properties across major global markets. In recent years, the business has expanded into digital infrastructure, building a growing portfolio of data centres and power-related assets to support increasing demand from technology and logistics customers.

The company combines a large-scale property development platform with long-term asset management, focusing on generating sustainable rental growth, expanding funds from operations and delivering value for shareholders through its global logistics real estate portfolio.