Segro, a FTSE 100 property company, has indicated it is "minded to accept" a £14 billion takeover offer from US real estate firm Prologis. This "best and final" proposal values Segro at 1,031.70 pence per share, representing a 42% premium compared to Segro's share price before Prologis made its initial bid. This marks the largest takeover premium for a real estate firm in the past decade.
The deal structure involves exchanging 0.0920 new Prologis shares for each Segro share, alongside a cash component of up to £3.5 billion. The total offer is 129 pence, or 14%, higher than Prologis's initial £12.6 billion offer made in late June. Prologis has also committed to pursuing a secondary listing on the London Stock Exchange upon completion of the acquisition.
The announcement came just five minutes before a critical deadline that would have required Prologis to withdraw its offer. The "put up or shut up" deadline has now been extended to August 12, giving Prologis more time to submit a binding offer. The recommendation from Segro's board is contingent on Prologis completing confirmatory due diligence and finalizing the remaining terms and documentation.
