Segro, the British owner of warehousing and logistics property, said on Wednesday its board had concluded the latest proposal from US rival Prologis was at a level it would be minded to recommend to shareholders — a significant shift in a takeover saga that has divided investors and turned into one of the highest-profile corporate battles this year.
Board swings behind improved offer
Shares in Segro jumped during the session after Prologis submitted what it described as a “best and final” proposal, before closing up 3% but still below the bid price. The board said the terms represented enough of an improvement on previous approaches that, if a formal offer were delivered, it would be prepared to recommend it to Segro holders.
"at a level that it would be minded to recommend to SEGRO shareholders"
The proposed package from Prologis consists of 0.0920 Prologis shares per Segro share together with a partial cash alternative totalling up to £3.5bn. The offer preserves the possibility of Segro retaining a secondary listing in London, a concession analysts said would reassure UK investors.
Extension gives more time for talks
Prologis has now been granted extra time to decide whether to press ahead. The deadline to announce a formal offer — or abandon the attempt — has been moved to 16:00 GMT on 12 August. Prologis said it welcomed the extension and expressed readiness to work with Segro’s board to reach an outcome it described as delivering value for all stakeholders.
"Prologis welcomes the additional time afforded by the extension and is ready to work with the SEGRO Board in reaching an outcome that delivers value for all stakeholders"
The latest approach values Segro at roughly £14bn (about $18.8bn) and stands at about a 45% premium to Segro’s closing price the day before Prologis’ interest became public in late June. Despite the premium, Segro’s shares remained under the implied offer price of £10.32 per share at the close.
- Proposal: 0.0920 Prologis shares + up to £3.5bn cash alternative
- Implied price per Segro share: £10.32
- Extended deadline to formalise bid: 16:00 GMT, 12 August
Why it matters
If consummated, the deal would rank among the largest foreign takeovers of a UK-listed business and would add to record dealmaking activity seen in the country. Segro owns about 10.9 million square metres of property across Europe; Prologis counts major logistics customers such as Amazon, FedEx and UPS. Both groups have also been developing data-centre projects to capitalise on demand tied to the artificial intelligence sector.
Earlier in the contest Segro had repeatedly rejected Prologis approaches, saying their valuations were inadequate. Pressure from key institutional investors helped bring the two sides back to the table and contributed to the board’s changed stance this week.
| Item | Detail |
|---|---|
| Deal value (approx.) | £14bn / $18.8bn |
| Implied premium | ~45% to pre-announcement price |
| Deadline to formalise offer | 16:00 GMT, 12 August |
The outcome remains uncertain. Segro’s board has signalled willingness to back a formal proposal but any final deal will depend on formal documentation, shareholder reaction and regulatory clearance — and whether Prologis chooses to proceed to a binding offer within the extended timeframe.
