Home / Business and Economy / Segro Rejects $16.6B Prologis Bid, Cites Undervaluation
Segro Rejects $16.6B Prologis Bid, Cites Undervaluation
24 Jun
Summary
- Prologis publicly offered $16.62 billion for Segro after rejection.
- Segro's board unanimously rejected the offer, deeming it undervalued.
- The bid values Segro shares at 925 pence, near net asset value.
U.S. logistics property group Prologis has escalated its efforts to acquire Segro by publicly disclosing its £12.6 billion ($16.62 billion) takeover proposal. This follows Segro's rejection of the approach, intensifying pressure on the UK warehouse owner's board to enter formal discussions. Prologis contends that Segro's shares have consistently traded below their net asset value.
Prologis aims to persuade Segro shareholders to encourage their board to engage in talks, enabling a binding offer for consideration. The disclosure prompted Segro shares to surge over 20% to 892 pence. Segro's board, however, unanimously and unequivocally rejected the proposal, describing it as "opportunistically timed" and falling "a long way short" of their valuation.
The all-share offer values Segro at approximately 925 pence per share, a premium of about 25% to recent prices. This valuation aligns closely with Segro's reported net asset value. The move is part of a broader trend of overseas buyers targeting London-listed businesses amid lower UK market valuations.
