The board of Segro, a major UK-listed warehouse operator, announced it would recommend shareholders accept a takeover proposal from Prologis, a larger US-based competitor. The decision came after months of negotiations and represents a significant reversal from the board’s previous rejections of multiple bids from the California company.
Prologis’s revised proposal values Segro at £10.32 per share through an exchange of 0.092 new Prologis shares for each Segro share held. This latest bid represents a 3.9% increase from Prologis’s previous offer and a 9.5% premium to its initial approach. Under the agreement, Segro shareholders would also receive a permitted dividend, and Prologis has committed to seeking a secondary listing for the company on the London Stock Exchange.
The turnaround occurred shortly after a major investor, Norway’s Norges Bank Investment Management, publicly encouraged engagement with Prologis. Norges held significant stakes in both companies and expressed support for the strategic combination. The extended timeline provides Prologis until 12 August to formalize its offer under UK takeover code regulations, following a missed deadline earlier this week.
Segro operates a substantial warehouse and logistics real estate portfolio across Europe, built on foundations dating to 1920. The company has increasingly diversified into data center operations to capitalize on demand from the artificial intelligence industry. Both Segro and Prologis have been expanding their data center holdings as this sector experiences rapid growth.
The proposed acquisition reflects broader market trends in which British companies have become acquisition targets for overseas buyers. Valuations of UK-listed firms have declined relative to US counterparts, prompting increased foreign interest in British businesses across various sectors including logistics, airline operations, and specialized services.
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