The board of SEGRO has unanimously rejected an improved takeover offer tabled by Prologis worth £13.5bn.
The revised proposal comprised 0.0890 new Prologis shares for each SEGRO share and a partial cash alternative of up to £2.7bn, representing 20% of the total consideration. The proposal valued each SEGRO share at 993p, or at 958p based on the volume weighted average price of Prologis’s shares over the last three-month period.
SEGRO’s board said the company’s “compelling growth strategy and standalone prospects underpin superior value creation versus the further revised proposal”.
The company said it had met with the management of Prologis over the weekend to understand Prologis’s “ability to improve its financial terms to a level that could be capable of being recommended by the board of SEGRO”. It added: “Should Prologis submit an improved proposal that more appropriately reflects the value of SEGRO’s compelling prospects, SEGRO would continue to make themselves available to engage further with Prologis.”
Last month, Prologis tabled the possibility of launching a £12.6bn all-share offer for SEGRO, which was unanimously and unequivocally rejected by the company’s board.
The board of SEGRO also confirmed it received an unsolicited proposal from Prologis regarding a possible offer for the company in March 2024. The proposal was unanimously rejected on the basis that it implied only a 10% premium to SEGRO’s share price and “failed to recognise SEGRO’s compelling standalone prospects”.
Andy Harrison, chairman of SEGRO, said: “The board does not believe that Prologis’s latest proposal to acquire SEGRO reflects the quality, scarcity or long-term prospects of SEGRO’s portfolio and platform and has been rejected unanimously by the board. The board is seeking to maximise value for shareholders and would further engage on any proposal which appropriately reflects the considerable embedded value and prospects of our business. We will continue to engage with our shareholders and remain focused on executing our clear strategy that underpins superior value creation.”
