Prologis, Inc. (NYSE: PLD) has agreed a recommended £14bn takeover of SEGRO plc (LON: SGRO), the FTSE 100 warehouse and data-centre landlord. Both companies confirmed the deal via a London Stock Exchange announcement this morning. SEGRO shares stood at 968.4p, up 0.77% from yesterday’s close of 961p.
That level sits below the fixed deal value of 1,031.7p a share, a gap that reflects the part-share structure of the offer and the fact that Prologis’s own stock has slipped since the reference date used to fix the terms. Prologis shares last traded at $144.15, down 0.32% on the day and below the $149.94 level recorded on 21 July, when the exchange ratio was set.
The deal caps a pursuit that began on 16 June, when Prologis first approached SEGRO with an offer implying 925p a share. SEGRO’s board rejected that proposal and a further one on 20 July before Prologis returned on 22 July with what it called a best and final offer of 1,031.7p, which the board indicated it would recommend. That has now been formalised: SEGRO’s directors are unanimously recommending the deal and have given irrevocable undertakings covering their own shareholdings.
Shareholders will receive 0.0920 new Prologis shares for each SEGRO share, with a Partial Cash Alternative capped at roughly a quarter of the total consideration. The 1,031.7p offer represents a 39% premium to SEGRO’s undisturbed close of 742p on 23 June, and a 14.4% premium to its EPRA NTA — a REIT measure of what its properties are worth per share — of 902p. Prologis said the combination expands its European portfolio by 47% to around 368 million sq ft and merges the two firms’ data-centre pipelines.
The transaction is structured as a scheme of arrangement, requiring SEGRO shareholder votes, sanction from the High Court of England and Wales, and antitrust and other regulatory clearances, with Prologis shares to gain a secondary London listing as a condition. Completion is targeted for the first half of 2027, and shareholders remain exposed to Prologis’s share price and dollar/sterling moves until then. The terms allow no increase unless a rival bidder emerges or the Takeover Panel consents.