Update: Segro Shares Surge as Prologis' GBP12.6 Billion Takeover Offer Rebuffed
(Updates to add Segro's statement)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 15% in early trading in London following the announcement.In a separate filing, Segro said Prologis' proposal "falls a long way short of" its own views on value. The company added that the offer was "opportunistically timed and sought to take advantage of the clear dislocation" between its current share price and its underlying business."This has been accentuated by major geopolitical issues which have adversely impacted trading valuations across the UK and European real estate sectors relative to the US REIT sector," Segro added.Prologis, one of the world's largest logistics REITs, 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.
