U.S-based Prologis takes $16.6 billion bid for UK landlord Segro public after rejection
Prologis' Takeover Bid and Segro's Response
Details of the Rejected Proposal
June 24 (Reuters) - Prologis said on Wednesday warehouse landlord Segro rejected its £12.6 billion ($16.62 billion) all-share takeover proposal and urged shareholders to press the British firm's board to engage with the U.S. logistics firm.
Prologis' Rationale and Shareholder Appeal
Prologis argued the FTSE 100 firm has traded at a persistent discount to its net asset value and faces structural constraints including balance sheet limitations that prevent it from unlocking value in its development and artificial intelligence data center pipeline.
"Prologis urges Segro shareholders to encourage the Segro board to engage with Prologis to allow a binding offer to be put to Segro shareholders for their consideration," Prologis said in a statement.
Segro's Position
Segro could not be immediately reached for comment.
Terms and Implications of the Offer
Under the terms of the proposed combination, Segro shareholders would have received 0.084 new Prologis shares for each share they held, implying a value of 925 pence apiece - a 24.7% premium to Segro's closing price on Tuesday.
The approach marks the latest attempt by a U.S. firm to snap up a London-listed company as weaker British valuations continue to attract American buyers with deeper pockets.
The company has until July 22 to unveil a firm offer for Segro or walk away, under British takeover rules.
Additional Information
($1 = 0.7580 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Thomas Derpinghaus)
