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Segro has rejected Prologis’ revised takeover proposal valued at USD 18.17 billion, marking the third unsuccessful approach by the U.S.-based warehouse company. The latest offer represented a premium of nearly 34% over Segro’s share price before the bid became public. Following the rejection, Prologis has appealed directly to Segro’s shareholders ahead of the UK takeover deadline. The company also indicated that it may explore a secondary listing on the London Stock Exchange if the proposed combination moves forward.
Segro has turned down a revised takeover proposal worth USD 18.17 billion from U.S.-based warehouse developer and logistics real estate company Prologis, with the latest offer becoming the third bid rejected by the British company.
In a statement issued earlier this week, Prologis said Segro’s board unanimously rejected its revised proposal in the past week. The offer valued Segro at GBP 9.93 per share and included 0.0890 new Prologis shares for each Segro share, along with a partial cash alternative of up to GBP 2.7 billion.
According to Prologis, the revised proposal represented a premium of nearly 34% over Segro’s closing share price before the U.S. company publicly disclosed its takeover interest. The company said it believed the proposal offered compelling value to Segro shareholders.
Following the rejection, Prologis has taken its proposal directly to Segro’s shareholders, urging them to encourage the company's board to engage in discussions before the regulatory deadline. Under the UK Takeover Code, Prologis has until July 22 to either announce a firm intention to make an offer or withdraw its pursuit of Segro.
As part of the proposed combination, Prologis also said it intends to assess the feasibility of obtaining a secondary listing of its shares on the London Stock Exchange, a move that could strengthen its presence in the UK capital market if the transaction proceeds.
The latest development follows two earlier unsuccessful approaches. Segro had rejected Prologis’ initial GBP 12.6 billion all-share proposal in the past month, stating that the offer was opportunistically timed and materially undervalued the company. A second proposal was also turned down in the past week before the latest revised bid was rejected.
Segro had not responded to Reuters' request for comment at the time of reporting.
The proposed acquisition is one of the largest potential transactions in the European logistics real estate sector. Prologis, one of the world's largest owners and developers of logistics warehouses, has expanded its portfolio over the years through acquisitions of warehouse-focused real estate investment trusts (REITs). The company has a significant presence across North America, Europe, Asia and Latin America.
The bid also reflects a broader trend in the UK market, where several listed companies have attracted overseas takeover interest amid comparatively lower market valuations. In recent months, companies including easyJet and Intertek have also received acquisition interest, highlighting the growing appeal of UK-listed firms to international buyers.
Source Reuters
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