US REIT Prologis Presses £12.6bn Takeover Bid for UK's Segro, Rejected
US logistics giant Prologis made a £12.6bn ($16.6bn) unsolicited all-stock takeover bid for UK-based FTSE 100 real estate investment trust Segro, offering a 25% premium. Segro's board unanimously rejected the offer as "opportunistically timed" and undervaluing the company, citing strong growth prospects in data centres driven by AI demand. Prologis went public to pressure shareholders, highlighting benefits of combining into a larger European logistics network. The bid is subject to UK takeover rules, with a July 22 deadline.
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FTSE 100 property giant Segro rejects third Prologis takeover bid
Segro, a FTSE 100 real estate firm, has rejected a second and third takeover bid from US rival Prologis. The latest bid valued Segro at £13.5bn, or £9.93 per share, offering 0.0890 Prologis shares plus £2.7bn in cash per Segro share, a 9.7% premium. Prologis criticized Segro's valuation as 'unrealistic,' arguing Segro understated risks in its development projects. The dispute centers on the value of each firm's data centre portfolio. Prologis is considering a secondary London listing. Analysts at Stifel suggested a possible 1,110p per share deal but warned a sale could harm the UK-listed real estate sector. A source close to the matter expects Prologis to pursue Segro 'aggressively,' predicting a messy battle ahead.
City AMPrologis intensifies pressure on Segro with £12.6bn takeover bid
US real estate giant Prologis has escalated its pursuit of FTSE 100 rival Segro, urging shareholders to engage with its £12.6bn takeover bid. Prologis argues the 925p-per-share offer provides a substantial upfront premium and access to a larger global data centre platform. Segro has strongly rejected the proposal, calling it opportunistic and inadequate, and unveiled a joint venture for a new data centre in Paris to demonstrate its independent growth strategy. The two firms are at odds over valuation, with Segro claiming its investment pipeline will add significant value. Segro shares rose slightly on Thursday, up 21% year-to-date.
City AMFTSE 100 property firm Segro slams Prologis takeover bid as 'opportunistic, one-sided, inadequate'
UK real estate investment trust Segro has strongly rejected a £12.6bn takeover bid from US rival Prologis, calling the offer 'opportunistic, one-sided and inadequate'. In a presentation to shareholders, CEO David Sleath accused Prologis of trying to take advantage of Segro's share price dip caused by the Iran war. Segro, which has invested heavily in data centres, argued the bid significantly undervalues its assets, including a £1.6bn industrial pipeline and a £2.5bn data centre pipeline. The company also criticized Prologis for failing to account for tax benefits and for proposing to dilute Segro shareholders' exposure to its unique portfolio. Despite the rejection, Segro shares slipped 1% to 868p on the day of the announcement, though they remain up 22% year-to-date.
City AMPrologis Presses Segro After $16.6B Takeover Offer Rejected
Prologis, a US-based real estate investment trust, is intensifying its pursuit of UK logistics warehouse operator Segro after Segro rejected a £12.6 billion ($16.6 billion) all-stock takeover bid. Prologis argues the deal would unlock significant value for Segro shareholders, citing a 25% premium, access to a larger logistics network, and a 'fortress balance sheet.' It claims Segro's standalone performance has lagged, with total shareholder returns declining 20.1% over five years versus Prologis' 38.6% gain. The combined entity would more than triple Segro's European footprint to 363 million square feet. Segro's chairman rejected the offer as 'inadequate, opportunistic and one-sided,' citing dislocation from the Middle East conflict. Market reaction was mixed, with Prologis shares down 2.2% and Segro shares up 7.8%.
Yahoo FinancePrologis intensifies pursuit of Segro after $16.6 billion offer rejected
Prologis, a US-based logistics real estate investment trust, is pressing its takeover bid for UK-based Segro after an all-stock offer valued at £12.6 billion ($16.6 billion) was rejected last week. Prologis outlined the strategic benefits of the deal on Tuesday, claiming it would unlock value for Segro shareholders through access to its larger network and 'fortress balance sheet,' while criticizing Segro's lagging returns and reliance on dilutive equity. Segro's chairman, Andy Harrison, dismissed the offer as 'inadequate, opportunistic and one-sided,' asserting the company's standalone growth prospects are superior. The proposed combination would more than triple Segro's European footprint to 363 million square feet and enhance its data center development. Market reaction has been mixed, with Prologis shares falling 2.2% and Segro shares rising 7.8%.
Yahoo FinanceAI Landlord Targeted for £12bn Takeover
British warehouse and data centre landlord Segro has rejected a £12.6bn takeover approach from US rival Prologis, the world's largest logistics real estate investment trust. The FTSE-100-listed Segro, which owns Europe's biggest hub of data centres in Slough, Berkshire, said the proposal was 'opportunistically timed' and undervalued the company amid geopolitical issues affecting UK and European real estate valuations. Prologis, valued at $135bn, had offered 925p per share, below Segro's perceived value. Segro has been expanding its data centre portfolio to meet AI demand, recently securing planning permission for a £1bn site in west London. The rejection follows a similar pattern where easyJet also rebuffed a US takeover bid earlier the same week, highlighting pressure on London-listed companies from American suitors.
Yahoo FinanceSegro Soars After Rejecting Prologis Takeover Bid, Boosting UK Real Estate Stocks
Segro, a UK-based real estate investment trust, saw its shares surge after rejecting a takeover bid from US logistics giant Prologis. The rejection lifted sentiment across the UK real estate sector, with other property stocks also gaining. The bid, which was not disclosed in detail, was deemed insufficient by Segro's board. The news highlights ongoing consolidation pressure in the European logistics and industrial property market, driven by robust demand for warehouse space. Segro's board stated that the offer undervalued the company and its future growth prospects. Analysts noted that such premium-hunting bids could continue as global players seek to expand in the UK market. The development underscores the resilience of UK real estate despite broader economic uncertainties.
All NewsFTSE 100 Segro rejects £12.6bn takeover bid from US real estate giant Prologis
Real estate investment trust Segro has rejected a £12.6 billion takeover bid from US-based Prologis, which wants to combine the two firms into a single global investment trust. Prologis went public with its offer to pressure Segro shareholders, valuing Segro shares at 925p each—a near 25% premium over the closing price of 742p on Tuesday. Under the proposal, Segro investors would own roughly 10.5% of the combined entity. Prologis argued the merger would unlock investment opportunities that Segro cannot achieve independently due to balance sheet and trading discount constraints. Segro's board unanimously rejected the proposal on June 23. Under UK takeover rules, Prologis has until 5 PM on July 22 to either make a formal bid or walk away for at least six months.
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