Norges Bank Investment Management urges Segro to engage with Prologis
Norges Bank Investment Management on Tuesday urged warehouse landlord Segro PLC to engage with Prologis Inc.
London-based Segro had rebuffed multiple takeover proposals from its San Francisco, California-based rival.
Norges, which has a 1.3% holding in Prologis and an 8.3% holding in Segro as of June 30, said it "understands the strategic rationale for a combination".
"We believe the proposal merits consideration, and we encourage the boards of both Segro and Prologis to enter into constructive discussions to explore whether a transaction can be agreed on mutually beneficial terms for both companies and their shareholders," Norges said.
On Monday, Prologis sweetened its all-share offer for Segro and added a partial cash alternative.
It is offering 0.0890 of a new Prologis share for each Segro share, which valued the FTSE 100 listing at 993 pence per share, or £13.5 billion in total, when the offer was made. Prologis noted the offer price is a 9.7% premium to Segro's adjusted net asset value of 905p per share at June 30.
Segro shrugged off the offer, which analysts agreed falls short. Focus is turning to whether Prologis will mount a hostile bid, as it has until the close of play on Wednesday to announce a firm offer or walk away.
Segro shares rose 0.6% to 874.40 pence each on Wednesday morning in London, while Prologis shares were up 0.6% at USD150.78 each in pre-market trading in New York.
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