Segro rebuffs £12.6bn approach from US rival in latest takeover tilt for UK firm
Prologis revealed it had put forward a proposal to buy FTSE 100 firm Segro worth 925p a share on June 16, which was rejected on Tuesday.
By Holly Williams
Warehouse property developer Segro has rejected a £12.6 billion takeover approach from US rival Prologis as the avalanche of overseas bids for British firms shows no sign of slowing.
San Francisco-based Prologis revealed it had put forward a proposal to buy FTSE 100 firm Segro worth 925p a share on June 16, which it said was rejected on June 23.
Under the deal, Segro shareholders would own around 10.5% of the combined group, according to Prologis.
Prologis said it was going public with the approach in an attempt to get the backing of Segro investors.
It comes amid a flurry of takeover tilts for UK firms, with easyJet on Monday rebuffing US investment fund Castlelake’s £4.74 billion takeover approach as an attempt to buy it “on the cheap”.
Last week, UK-listed laboratory testing company Intertek agreed a £9.5 billion takeover by Swedish investor EQT, dealing yet another a blow to the London market.
Prologis said it “urges Segro shareholders to encourage the Segro board to engage with Prologis to allow a binding offer to be put to Segro shareholders for their consideration”.
It added: “Prologis believes that the combination is a highly compelling opportunity for Segro shareholders.
“Segro shareholders would receive shares in the world’s largest logistics real estate investment trust with a 140.9 billion US dollar market capitalisation, unlocking, on closing, significant upside to the current share price.”
The suitor has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.