Shares in Segro (LSE:SGRO) rose 7% after the UK logistics property specialist announced its support for an enhanced takeover proposal from U.S. industrial real estate group Prologis (NYSE:PLD). The revised bid values Segro at approximately £14 billion ($18.72 billion), reflecting renewed confidence that the transaction could move forward.
Prologis increases offer to £10.32 per share
Under the revised terms, Prologis is offering 0.092 newly issued Prologis shares for each Segro share, valuing the UK company at £10.32 per share. The latest proposal represents a 3.9% increase on the previous bid and a 9.5% improvement over the initial offer.
Prologis said the revised terms represent its final proposal unless circumstances change. In addition to the share-based offer, the company is providing a partial cash alternative worth up to £3.5 billion, equivalent to approximately one-quarter of the overall transaction value.
Shareholder pressure helps drive negotiations
The improved bid follows calls from shareholders of both companies for their respective boards to engage in discussions over a potential combination. Segro’s backing of the revised proposal signals increased momentum towards a possible agreement.
If completed, the acquisition would combine two of the world’s leading industrial and logistics real estate companies. The transaction would significantly expand Prologis’ presence across Europe through Segro’s portfolio of logistics and industrial assets, while also adding the company’s growing data centre development pipeline.
About Segro
Segro plc is a UK-based real estate investment trust specialising in modern warehouses, logistics facilities and industrial properties across the UK and continental Europe. The company also has an expanding portfolio of data centre developments, serving customers in logistics, manufacturing, e-commerce and digital infrastructure markets.
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