Segro rejects £12.6bn takeover bid from US real estate giant Prologis

Published Jun 24, 06:49 AM UTC

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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.

Source report

Segro boss David Sleath.

Real estate investment firm Segro has rejected a £12.6bn takeover approach from a US fund seeking to merge the two companies into a single large-scale investment trust.

Prologis stated that it had made its offer public in an effort to persuade Segro shareholders to support the deal.

Under the terms of Prologis' proposal:

Segro shares would be valued at 925p each, representing a nearly 25% premium on the company's closing share price of 742p on Tuesday.
Segro investors would hold approximately 10.5% of the newly combined global entity.

Prologis said the acquisition would "unlock embedded opportunities for investment" that Segro would be "unable to unlock standalone due to structural constraints, including its balance sheet capacity and trading discount."

The US firm revealed that Segro's board had "unequivocally" rejected the proposal on June 23.

Under UK takeover rules, Prologis now has until 5pm on July 22 to either submit a formal bid or walk away for at least six months.

This is a breaking news story – refresh for updates.

Source

City AMWestern

Original headline: FTSE 100 Segro fights off £12.6bn swoop by US real estate giant

Original language: EN-GB

Part of this Story

US REIT Prologis Presses £12.6bn Takeover Bid for UK's Segro, Rejected

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