Prologis’ 24.6% Premium All-Share Offer Values SEGRO at 925p
PLD•Prologis sent an all-share takeover proposal on June 16 offering 0.084 Prologis shares for each SEGRO share, valuing SEGRO at 925p per share and approximately £12.6 billion. SEGRO’s board unanimously rejected the offer on June 23 with no counterproposal.
1. Proposal Details
On June 16 Prologis sent an indicative all-share proposal to acquire SEGRO, offering an exchange ratio of 0.084 Prologis shares per SEGRO share. Based on a Prologis share price of $145.30 and a GBP:USD rate of 1.32 at market close on June 23, the offer valued SEGRO at 925p per share and its entire issued share capital at approximately £12.6 billion.
2. SEGRO Board Rejection
SEGRO’s board held a meeting on June 23 and unanimously rejected the proposal, declining to engage on revised terms. The rejection concludes the initial engagement under the City Code on Takeovers and Mergers unless Prologis secures renewed discussions.
3. Strategic Rationale and Next Steps
Prologis highlighted a 24.6% premium to SEGRO’s last share price, citing complementary European portfolios, balance sheet strength (net debt/EV of 22% vs. 37%), and pipeline monetisation as value drivers. Prologis must announce a firm intention by 5:00 pm London time on July 22 or withdraw its proposal, leaving open the possibility of a revised offer.
