Key facts
- Segro rejected a third takeover bid from US rival Prologis, valued at £13.5 billion.
- The latest offer included an increased stock component and a partial cash option.
- Segro's board unanimously rejected the bid, deeming it opportunistic and undervalued.
- Prologis argued it can accelerate Segro's growth, especially in data centers.
- Segro remains open to further engagement with Prologis.
- Segro's shares have risen nearly 21% since Prologis first disclosed its takeover interest.
Segro, a UK-based industrial real estate investment trust (REIT), has once again rejected a takeover offer from its US rival, Prologis. The third bid, announced by Prologis, valued Segro at approximately £13.5 billion ($18.2 billion), representing a 9.7% premium over Segro's estimated net asset value as of the end of June. The sweetened offer included an increase in the stock component to 0.089 new Prologis shares for each Segro share and added a partial cash option of up to £2.7 billion ($3.6 billion). Under the proposal, Segro shareholders would hold about a 9.2% stake in Prologis, the world's largest owner of industrial real estate. Prologis also indicated it would explore a secondary listing of its shares on the London Stock Exchange to address UK investor concerns. Prologis argues that it can accelerate Segro's growth strategy, particularly in the data center sector. However, Segro's board unanimously rejected the offer, describing it as opportunistic and asserting that the company can deliver better shareholder value as a standalone entity. Prologis refuted this, stating Segro's valuation assessment is unrealistic. Segro has indicated it remains open to further engagement with Prologis. Prologis' initial £12.6 billion ($16.6 billion) bid was disclosed on June 24, followed by a second, undisclosed proposal earlier this month. Segro's shares have climbed nearly 21% since Prologis first revealed its takeover interest a month ago, while Prologis shares have declined about 2%.