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Segro Shares Surge as Prologis' GBP12.6 Billion Takeover Offer Rebuffed

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Segro Shares Surge as Prologis' GBP12.6 Billion Takeover Offer Rebuffed

Shares in Segro (SGRO.L) jumped early Wednesday morning after the UK warehouse landlord rejected a 12.6 billion-pound-sterling takeover approach from US-based industrial real estate investment trust Prologis (PRLD.VI, 0KOD.L).

Under Prologis' indicative proposal, submitted on June 16, Segro shareholders would have received 0.084 new Prologis shares for each share held. The offer implied a value of 9.25 pounds per share and reflected a premium of 24.6% to Segro's closing share price on Tuesday.

The proposal, which would have left Segro shareholders owning 10.5% of Prologis, was unanimously rejected by the target company's board, Prologis said Wednesday.

Segro shares rose more than 15% in early trading in London following the announcement.

Prologis, one of the world's largest logistics REITs with a market cap of over $130 billion, said the proposed deal offers compelling strategic benefits and urged Segro shareholders to push the board to engage with Prologis and allow a binding offer.

However, Prologis noted that there is no certainty it will proceed with a formal bid for Segro.

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