Prologis proceeds with $18.8B Segro takeover, launches $2.1B share offering

Published Aug 4, 03:01 PM UTC

Prologis, a US-based logistics real estate company, announced on Tuesday that it will proceed with its $18.8 billion acquisition of London-based warehouse operator Segro. The deal follows multiple rejections from Segro's board and Prologis' subsequent 'best-and-final' offer. To help fund the transaction, Prologis launched a public offering of 15 million shares of common stock, expected to generate $2.1 billion in gross proceeds. The acquisition will expand Prologis' European portfolio by 47% to 368 million square feet and give it a development pipeline of 13 million square feet on the continent. The combined entity will have $269 billion of assets under management. Segro stockholders will receive 0.092 new Prologis shares for each share held, with an option for up to 25% in cash. The deal is expected to be neutral to slightly dilutive to Prologis' funds from operations in the first full year after closing, which is scheduled for the first half of 2027. Prologis will also seek a secondary listing on the London Stock Exchange.