Prologis has submitted a ‘best and final’ takeover offer of £14bn for SEGRO.
The proposal consists of 0.0920 new Prologis shares for each SEGRO share – a 9.5% increase on Prologis’ initial proposal – and a partial cash alternative of up to £3.5bn, representing 25% of the total consideration, at a fixed price of 1,031.7p per SEGRO share, subject to pro-rata scale-back.
Following completion of the deal, and assuming the partial cash alternative is fully taken up, existing SEGRO shareholders would hold approximately 8.9% of Prologis’ issued share capital.
Prologis has also confirmed that it intends to explore the feasibility of a secondary listing of Prologis shares on the London Stock Exchange if there is sufficient investor demand following completion of the proposed deal.
Prologis said its final proposal provides a “compelling opportunity for both sets of shareholders and urges SEGRO shareholders to encourage their board to recommend the combination”.
Dan Letter, chief executive officer of Prologis, said: “There is no doubt a combination of both companies would deliver meaningful value. We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the SEGRO board. We run Prologis with discipline and this is our best and final offer.”
Earlier this week, the board of SEGRO “unanimously rejected” a takeover offer tabled by Prologis worth £13.5bn. This was an increase on the £12.6bn all-share offer submitted by Prologis in June, which was unanimously and unequivocally rejected by SEGRO’s board.
