Warehouse property developer Segro has rejected a £12.6 billion takeover approach from US rival Prologis, marking the latest in a series of overseas bids for British firms. San Francisco-based Prologis revealed it had put forward a proposal to buy FTSE 100 firm Segro worth 925p a share on June 16, which it said was rejected on June 23.
Details of the Proposal
Under the deal, Segro shareholders would own around 10.5% of the combined group, according to Prologis. Prologis said it was going public with the approach in an attempt to get the backing of Segro investors. The suitor has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.
Context of Overseas Bids
This comes amid a flurry of takeover tilts for UK firms. EasyJet on Monday rebuffed US investment fund Castlelake’s £4.74 billion takeover approach as an attempt to buy it “on the cheap”. Last week, UK-listed laboratory testing company Intertek agreed a £9.5 billion takeover by Swedish investor EQT, dealing another blow to the London market.
Prologis Statement
Prologis said it “urges Segro shareholders to encourage the Segro board to engage with Prologis to allow a binding offer to be put to Segro shareholders for their consideration”. It added: “Prologis believes that the combination is a highly compelling opportunity for Segro shareholders. Segro shareholders would receive shares in the world’s largest logistics real estate investment trust with a 140.9 billion US dollar market capitalisation, unlocking, on closing, significant upside to the current share price.”
