Segro rejects £12.6bn takeover approach from Prologis

(Sharecast News) - Segro has rebuffed a £12.6bn takeover approach from US real estate giant Prologis, it emerged on Wednesday. The San Francisco-based business, a specialist in logistics facilities, first approached the blue chip in mid June with an indicative all-share proposal.

Segro "unequivocally rejected" that approach, which values the issued ordinary share capital at around £12.6bn, Prologis confirmed. But it has urged shareholders to encourage the board to engage with it, arguing that a deal would create a "highly compelling" opportunity for investors.

It continued: "The combination provides Segro shareholders with participation in a global platform with a track record of out-performance across key metrics and the successful integration of corporation transactions with the delivery of synergies.

"Prologis believes that its global platform, balance sheet strength and diversified capital base can unlock the significant embedded value of Segro's development and data centre pipeline."

Under the terms of the proposed combination, Segro shareholders would receive 0.084 new Prologis shares for every Segro share they hold. Based on the closing price of 23 June, the deal implies a value of 925p for each Segro share.

Following completion, Segro shareholders would hold around 10.5% of Prologis' issued share capital.

Segro has yet to comment.

Under Takeover Panel rules, Prologis has until 1700 BST on 22 July to either announce a firm offer or walk way, a so-called put up or shut up deadline.

Prologis, with a market value of around $141bn, is the world's largest logistics real estate investment trust.

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