Prologis ramps up pressure on Segro as deadline looms

(Sharecast News) - Prologis made a fresh tilt at takeover target Segro on Tuesday, as it appealed to shareholders ahead of a key deadline. The US logistics giant has been pursuing the British landlord since early June, with its latest sweetened bid of 0.089 new Prologis shares for each Segro share and a partial cash alternative of up to £2.7bn valuing the business at 993p per share, or £13.5bn.

Segro has rebuffed all approaches, however, calling the timing opportunistic, and on Monday revealed an initial offer had been made and rejected in March 2024. It also said it had met with Prologis on Sunday to discuss improving financial terms, something which failed to happen.

However, on Tuesday Prologis stepped up its campaign. It confirmed it had met with Segro's management, but not to discuss a fresh offer. Instead, it had wanted to "understand where there was a credible path to a transaction capable of recommendation by the Segro board" and was "disappointed" that the discussions had not provided any "meaningful clarity".

The US property firm, a specialist in data centres, also referenced the 2024 approach, noting that Segro rejected its proposal in 72 hours as it saw "no merit" in a combination.

It continued: "Prologis believes that decision has left Segro shareholders 36.5% worse off. We believe the Segro board is repeating that mistake.

"Prologis remains convinced that a combination would create substantial long-term value. However, highly-disciplined capital allocation has always been fundamental to our strategy and our responsibility to Prologis shareholders.

"We remain ready to engage constructively at any time in the interests of all shareholders."

Under Takeover Panel rules, Prologis has until 1700 BST on Wednesday to make a firm offer for Segro or to walk away.

Shares in Segro were down 2% at 885p as at 0845 BST, while Prologis shares were flat in pre-market trading.

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