UK's Segro agrees $19 billion Prologis takeover after investor pressure

The agreed offer comprises 0.0920 Prologis shares, a partial cash alternative of up to £3.5 billion, and a potential final dividend, alongside a possible secondary London listing of the combined group, of which Segro shareholders will hold roughly 8.9%.

The offer is at a 42% premium to Segro's closing price on June 23, a day before Prologis went public with its interest. The companies had until August 12 to finalise a deal under UK takeover rules.

Evercore, Morgan Stanley, Goldman Sachs and UBS advised Segro, while Rothshchild, J.P. Morgan, Eastdil Secured, Citigroup and BofA Securities advised Prologis.

($1 = 0.7450 pounds)

Segro, which owns around 10.9 million square metres (117 million sq. ft) of space across Europe, had rejected three previous approaches from Prologis but said last month that it was minded to back a "best and final proposal".

Investors including APG Asset Management, Norges Bank and CCLA Investment Management had urged the companies to engage in talks, saying a combination would be valuable.

"Prologis and Segro believe that the combination offers a compelling opportunity to Segro shareholders," the companies said in a statement. As of Monday, Prologis and Segro had a combined market capitalisation of over $152 billion.

Prologis counts among its customers, and Prologis and Segro have been building out a data centre pipeline to tap into the booming AI industry.