22nd Jul 2026 17:26
(Alliance News) - Segro PLC on Wednesday said its board is prepared to recommend Prologis Inc's "best and final" takeover proposal, after the US logistics property group improved its offer and agreed to seek a London stock market listing.
The London-based warehouse property investor said Prologis' latest proposal comprises 0.0920 new Prologis shares for each Segro share, alongside a partial cash alternative of up to GBP3.5 billion, representing 25% of the total consideration.
Based on Prologis' closing share price on Tuesday and prevailing exchange rates, the proposal values Segro at 1,031.70 pence per share, or around GBP14.0 billion.
Including Segro's expected 2026 final dividend of up to 22.56p per share, shareholders would receive total value of up to 1,054.3p per share. They would also retain the 2026 interim dividend of up to 10.14p per share.
Following discussions on Wednesday, Prologis also agreed to commit contractually to establishing a secondary listing of its shares on the London Stock Exchange before completion should it make a firm offer.
Segro said its board has unanimously concluded that the financial terms of the proposal are at a level that it would be minded to recommend to shareholders if Prologis announces a firm offer under Rule 2.7 of the UK Takeover Code.
Any recommendation remains subject to Prologis completing confirmatory due diligence and agreement on the remaining terms, conditions and definitive transaction documentation.
The proposal is described as "best and final", although Prologis reserves the right to improve its offer if a competing bidder emerges or with the consent of the UK Takeover Panel in exceptional circumstances.
Segro also said the Takeover Panel has agreed to extend the "put up or shut up" deadline to August 12 from July 22, giving Prologis more time either to announce a firm offer or walk away.
Shares in Segro closed up 2.9% at 895.00p in London on Wednesday. Prologis shares were down 3.4% at USD144.85 in New York.
By Eva Castanedo, Alliance News senior economics reporter
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