Prologis sweetens Segro offer once more in "final" push to strike deal
Prologis Inc on Wednesday made a last ditch effort to win over Segro PLC as it increased its takeover bid for the London-based warehouse landlord once more.
The San Francisco, California-based global real estate investment trust said its "best and final" proposal was 0.0920 of a new Prologis share for each Segro share held, valuing the FTSE 100 listing 1,031.7 pence per share and £14.0 billion in total.
Prologis also increased the value of a partial cash alternative to up to £3.5 billion, at a fixed price of 1,031.7p per Segro share.
Prologis said the proposal is "final and will not be increased".
Shares in Segro rose 4.1% in response to 904.60p each in London on Wednesday.
On Monday, Prologis had sweetened its all-share offer for Segro and added a partial cash alternative. It offered 0.0890 of a new Prologis share for each Segro share, worth 993p per share or £13.5 billion in total. It proposed a partial cash alternative of 1,000p per Segro share, capped at £2.7 billion.
On completion and assuming that the partial cash alternative is fully taken up, existing Segro shareholders would hold around 8.9% of Prologis' issued share capital. The US firm confirmed again that it intends to explore the feasibility of a secondary listing of Prologis shares on the London Stock Exchange if there is sufficient investor demand.
Prologis Chief Executive Dan Letter said: "There is no doubt a combination of both companies would deliver meaningful value. We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the Segro board. We run Prologis with discipline and this is our best and final offer."
Prologis called on Segro to seek approval from the UK Takeover Panel to extend the put-up-or-shut-up deadline, currently set for end-of-play Wednesday, in order to allow time to agree the terms of a recommended firm offer.
On Tuesday, Norges Bank Investment Management, which holds a 8.3% stake in Segro, called on the both boards to enter into constructive discussions to explore whether a transaction can be agreed.
Segro has been defiant in opposing the Prologis plan, instead highlighting the attractions presented by its own growth strategy.
Prologis has steadily increased its offer proposals after its first tilt back in June, which valued Segro at around £12.6 billion or 925p per Segro share, was rejected.
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