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 giant, announced it will proceed with its $18.8 billion acquisition of London-based warehouse operator Segro after multiple board rejections. To fund the deal, Prologis launched a public offering of 15 million shares expected to generate $2.1 billion in gross proceeds, with underwriters J.P. Morgan and BofA Securities having an option for additional shares. The acquisition will expand Prologis' European portfolio by 47% to 368 million square feet and add a development pipeline of 13 million square feet. The combined entity will have $269 billion in assets under management. Segro stockholders will receive 0.092 new Prologis shares per share held, with an option for up to 25% cash. The deal is expected to be neutral to slightly dilutive to Prologis' funds from operations in the first full year after closing, scheduled for the first half of 2027. Prologis will also seek a secondary listing on the London Stock Exchange.