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Prologis makes a final offer to buy Segro for more than $18.7B
The latest proposal is 14% above Segro’s estimated net asset value at the end of June and would add 117M square feet of European industrial and data center space valued at $29.3B.
Prologis has made what it called its firm final preliminary offer to buy U.K.-based industrial real estate developer Segro for more than $18.7 billion, a step up from its previous rejected offer, according to The Wall Street Journal. The offer price is $500 million higher than Prologis’ third rejected proposal from Monday and is also cited as being 14% above Segro’s estimated net asset value at the end of June. The WSJ reported that Segro’s board has recommended it consider the offer if it is formally made.
Deal details include an acquisition that would combine two large industrial REIT portfolios, with Prologis saying Segro would add 117 million square feet of European industrial and data center space valued at $29.3 billion. Prologis, which said it has about $240 billion in assets under management, described the transaction as a way to accelerate growth, particularly in the data center sector.
Segro extended the deadline for Prologis’ formal offer to Aug. 12, and the proposal includes a partial cash alternative of up to $4.6 billion. In support of the change, Segro’s board said it was minded to recommend the fourth proposal to shareholders, while rejecting three earlier bids that began on June 24. Prologis also indicated it raised the offer after shareholder feedback, the WSJ said.