Segro says yes to Prologis: a $19 billion deal creates a logistics giant

The British property investment group Segro has accepted the takeover bid made by the US firm Prologis, in a deal worth a total of $18.8 billion (approximately £14.3 billion when taking into account the expected dividends), set to become one of the largest overseas acquisitions of a UK-listed company. The agreement brings an end to lengthy negotiations, after Segro had rejected three previous offers from the US group, which it considered too low.

Segro is one of Europe’s leading owners, operators and developers of logistics and industrial property, whilst Prologis is the world’s largest operator in the sector. The transaction will create a global platform with approximately $269 billion in assets under management, further strengthening the group’s presence in the European market and in infrastructure dedicated to logistics, energy and data centres.

In Europe, the combined operational portfolio will reach 368 million square feet (34.2 million square metres), representing a 47 per cent increase on Prologis’ current European footprint. The development pipeline will rise to 13 million square feet (1.21 million square metres), whilst the European land bank will increase by 126 per cent, expanding the prospects for long-term growth.

Under the terms of the offer, Segro shareholders will receive 0.092 new Prologis shares for each share held. There is also a partial cash alternative, funded up to a maximum of £3.5 billion, which will allow shareholders to replace all or part of the share consideration with a cash payment. The base offer corresponds to 25 per cent of the consideration, amounting to 258 pence in cash and 0.069 new Prologis shares for each Segro share.

The base entitlement under the partial cash alternative is equivalent to 25 per cent of the fixed price of 1,031.7 pence per Segro share: shareholders who choose this option will receive 258 pence in cash and 0.0690 new Prologis shares for each share held. Segro shareholders will also retain the right to receive and retain the dividends scheduled for 2026, up to 10.14 pence for the interim dividend and up to 22.56 pence for the final dividend, which the company intends to distribute prior to the completion of the transaction. Taking these dividends into account, the maximum value of the offer amounts to approximately £14.3 billion, representing a 42 per cent premium over the closing price of Segro’s shares on 23 June, the day before Prologis announced its interest.