UK's Segro agrees $19 billion Prologis takeover after investor pressure
PLD•Offer terms and rationale
Segro, which owns around 10.9 million square metres (117 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" from Prologis if a formal offer were to be made before an August 12 deadline.
"Prologis and Segro believe that the combination offers a compelling opportunity to Segro shareholders. Segro shareholders would become shareholders in the world's largest logistics REIT with a $138 billion market capitalisation," the companies said in a joint statement.
Segro and Prologis, which counts Amazon, FedEx and UPS as customers, have been building out a data centre pipeline to tap into the booming AI industry.
Segro accepts Prologis takeover bid
British warehouse landlord Segro SGRO.L has accepted a takeover bid by rival U.S. logistics firm Prologis PLD.N in a deal worth up to £14.3 billion ($19.19 billion), the companies said on Tuesday, following pressure from investors.
The deal adds to a record year for dealmaking in the UK, and is the second-biggest so far after Unilever's $65 billion food business merger, announced in March.
Segro shares were up about 1% in early trading, but were still below the agreed takeover price of up to £10.54 per share.
Investor pressure and financing structure
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. The investors could not be immediately reached for comment on Tuesday.
The agreed offer comprises 0.0920 Prologis shares, a partial cash alternative of up to £3.5 billion, and a potential dividend, alongside a possible secondary London listing of the combined group.
