4th Aug 2026 09:31
(Alliance News) - Segro PLC on Tuesday agreed to a share and cash takeover offer from US peer Prologis Inc that values the London-based warehouse property investor at GBP14 billion.
The agreement ends a tussle between the two logistics real estate specialists that began in mid-June, when Segro rejected an initial offer by San Francisco, California-based Prologis. The final agreement matches a late-July "best and final" offer from Prologis that Segro's board said it was prepared to recommend to shareholders.
Segro shareholders will receive 0.0920 new Prologis share for each Segro share, with the option to elect for up to 25% of the consideration in cash at 1,031.7 pence per share. Based on the Prologis closing share price of USD149.94 and the dollar-pound exchange rate on July 21, the day before Prologis announced its best and final proposal, the offer values each Segro share at 1,031.7p and the entire company at GBP14.0 billion.
Segro shares were up 1.0% to 970.80p early Tuesday in London. The stock is up 51% over the past 12 months. Prologis shares traded at USD144.25 per share in the New York after-hours market on Monday. The lower Prologis share price since July 21 reduces the offer value to 998.1p per share.
Segro shareholders electing for the basic cash entitlement will receive 258p in cash and 0.0690 Prologis share per Segro share.
Segro shareholders also will be entitled to retain the interim dividend of 10.14p that Segro declared with its interim results last week and any final dividend for 2026 of up to 22.56p declared by Segro before completion of the takeover. This would take the offer's value per Segro share, based on the July 21 Prologis price, up to 1,054.3p.
Segro said its board intends unanimously to recommend the deal and vote for it with their shares, about 0.2% of the total. The acquisition is expected to complete in the first half of 2027, subject to shareholder, court and regulatory approvals.
"Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure," commented Segro Chief Executive Officer David Sleath.
"We believe the combination would bring together two highly complementary businesses and create a compelling platform, combining Segro's exceptional portfolio and development pipeline with Prologis' existing European business and global scale, customer franchise and operational capabilities, while retaining a shared commitment to disciplined capital allocation, customers and people."
By Tom Waite, Alliance News editor
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