The boards of Prologis and SEGRO have reached agreement on the terms of a £14bn takeover deal.
Prologis will pay 1,031.7p per SEGRO share – a premium of 39% on the UK REIT’s share price on 23 June – with SEGRO shareholders paid mostly in stock, with a partial cash alternative of £3.5bn.
Under the terms of the agreement, SEGRO shareholders will receive 0.0920 new Prologis shares for each SEGRO share held and could own up to 9% of the combined business.
Daniel S Letter, chief executive officer of Prologis, said: “We are pleased to have reached agreement with the SEGRO board on a combination that we believe will create meaningful value. This deal brings together SEGRO’s exceptional portfolio and customer relationships with Prologis’ global platform, operating expertise and financial strength.
“We have great respect for SEGRO, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead. As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders.”
David Sleath (pictured), chief executive officer of SEGRO, added: “SEGRO has built a unique business over many decades, assembling an irreplicable portfolio of high quality industrial, logistics and data centre assets in some of Europe’s most attractive locations. Through the dedication of our people and the strength of our customer relationships, we have a proven track record of value creation over many years. Prologis shares our conviction in the long-term structural drivers underpinning demand for modern logistics and data centre infrastructure.
“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.
“Prologis’ proposal provides SEGRO shareholders with a compelling opportunity to realise the value created by SEGRO and benefit from the future growth of the combined group. I would like to thank our colleagues for their unwavering commitment and contribution to SEGRO’s success. Their dedication has been instrumental in building the exceptional business we are today.”
