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Segro to recommend Prologis bid in 14 billion pounds takeover
Segro said it is minded to recommend Prologis’s best and final offer of £14 billion, with talks extending to Aug. 12 and a 25% cash component.
Segro, the FTSE 100 warehouse landlord also known as Slough Estates, has agreed to recommend a takeover offer after capitulating just minutes before the deadline, according to Guardian Business. The company said it is minded to recommend Prologis’s “best and final” bid worth £14 billion, or £10.32 per share.
The two companies now have until 12 August to negotiate a firm agreement, the outlet reported. The deal is set to be the biggest Footsie takeover so far this year, marking another major shift in London-listed property holdings.
In the run-up to the recommendation, Segro’s chief executive, David Sleath, argued for patience and pointed to growth opportunities tied to AI datacentres and demand for big-box warehouse space for online retailers. Segro also cited CBRE’s estimate that a near-£18 billion standalone valuation could be reached within a few years, or £13 a share.
Prologis, by contrast, argued that those valuations were unrealistic because Segro lacks the financial strength to fully pursue the opportunities, and it pressed shareholders to accept the offer terms. The outlet said the bid includes a relatively small cash element, with 25% of the value delivered in cash, alongside a share swap.
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