Prologis said on 24 June that it had put an indicative all-share proposal to the board of SEGRO valuing the FTSE 100 warehouse owner at about £12.6bn, or 925p a share, and that SEGRO's directors had rejected it the previous day.
Why Prologis, Inc. is buying SEGRO plc
Prologis argued that SEGRO shareholders would gain exposure to a global logistics platform, relief from a persistent discount to net tangible assets and a stronger balance sheet, and that it could monetise SEGRO's development, power and data-centre pipeline faster.
Deal terms and financing
The proposal offered 0.084 new Prologis shares per SEGRO share, a 24.6% premium to the 742p closing price on 23 June and equal to SEGRO's last reported EPRA NTA of 925p. SEGRO shareholders would have owned about 10.5% of the enlarged Prologis. The final terms of 22 July raised the ratio to 0.0920 and added a partial cash alternative of up to £3.5bn, about a quarter of the consideration.
Regulatory approvals and timing
Under the Takeover Code Prologis faced a 22 July put-up-or-shut-up deadline, later extended to 12 August. It announced a recommended firm offer on 4 August, to be implemented by scheme of arrangement and conditional on shareholder, court and regulatory approvals and a secondary London listing for Prologis; completion is expected in the first half of 2027.
Market context
SEGRO had itself lost out to Brookfield in the contest for Tritax EuroBox. Its board initially called the approach opportunistically timed, arguing it sought to exploit a gap between UK and European real estate valuations and those of US REITs.
