Key facts
- FTSE 100 property firm Segro has agreed to a £14bn takeover by Prologis.
- The deal values the British firm at £14.3bn.
- Segro shareholders will receive 0.92 Prologis shares for each Segro share, with a partial cash alternative of £3.5bn.
- The takeover is expected to be completed in the first half of next year.
- Prologis' final offer represents a 39% premium to Segro's share price on the day of its initial takeover approach.
FTSE 100 property firm Segro has agreed to a £14bn takeover by Prologis, marking a significant exit from the London Stock Exchange. The US-based commercial landowner announced on Tuesday that an agreement has been reached with Segro's board, valuing the British firm at £14.3bn.
Under the terms of the deal, which is slated for completion in the first half of next year, Segro shareholders will receive 0.92 Prologis shares for each Segro share they hold. A partial cash alternative of £3.5bn is also available. This transaction represents the latest high-profile departure from the London Stock Exchange, with 11 firms valued at over £1bn having already exited the market via takeovers this year.
Daniel Letter, chief executive of Prologis, stated that the deal combines Segro's portfolio and customer relationships with Prologis' global platform and financial strength, aiming to create greater value for customers and shareholders. Segro's chief executive, David Sleath, echoed this sentiment, highlighting a shared conviction in the long-term demand for modern logistics and data centre infrastructure, and believing the combination will create a compelling platform.
The two real estate firms had engaged in a period of negotiation, with Prologis previously deeming Segro's valuation "unrealistic" due to perceived underestimation of risks associated with its development projects. Sleath had earlier criticized Prologis' initial £12.6bn offer as "opportunistic, one-sided and inadequate." Following discussions, Prologis clarified that the meeting was intended to explore a credible path to a transaction rather than to present a revised offer.
Segro shareholders will be entitled to claim the company's interim dividend of 10.14p per share, in addition to the final dividend to be declared in March. Prologis noted that the agreed-upon offer represents a 39% premium over Segro's share price on the day of Prologis' initial takeover approach.