Warehouse firm Segro rejects Prologis move

Warehouse property developer Segro has rejected a £12.6 billion takeover approach from US rival Prologis.

San Francisco-based Prologis has proposed buying FTSE 100 firm Segro in a deal worth £9.25 a share.

The move was rejected yesterday (June 23).

It is understood Segro shareholders would own around 10.5 per cent of the combined group under the deal.

Segro – which has properties across London and the Midlands – said the approach “falls a long way short of its views on value” and was “opportunistically timed”, adding the business has a “clear strategy, supported by a strong balance sheet and a proven operating platform.”

Prologis said “the combination is a highly compelling opportunity for Segro shareholders”.

The suitor has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.

The offer comes amid a flurry of takeover tilts for UK firms, with budget carrier EasyJet rebuffing US investment fund Castlelake’s £4.74 billion takeover approach on Monday, and UK-listed laboratory testing company Intertek agreeing a £9.5 billion takeover by Swedish investor EQT.

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