Prologis Sets Final $18.7 Billion Price Tag for Segro Takeover

Prologis is offering 0.092 new shares for each Segro share, valuing the U.K. firm at 10.32 pounds per share. This represents a 3.9% premium over the previous proposal and a 9.5% increase from the initial approach. The deal structure includes a partial cash alternative of up to 3.5 billion pounds, accounting for roughly a quarter of the total transaction value.

Segro signaled openness to the deal, agreeing to extend the deadline for a firm offer until Aug. 12. While the company previously rejected lower bids, the board now appears ready to negotiate. Prologis CEO Dan Letter emphasized that the offer reflects disciplined valuation and provides clear benefits to stakeholders. To facilitate the integration, Prologis plans to explore a secondary listing on the London Stock Exchange.

Institutional investors, including Norges Bank Investment Management and APG Asset Management, have publicly encouraged the boards to engage. Palliser Capital, an activist investor holding a stake in Segro, also pressured the board to move forward, labeling the current proposal a compelling value proposition that warrants immediate, meaningful discussion.