Segro board is minded to back Prologis' £14B final offer
Four offers in a month. The world's largest industrial landlord is close to buying Europe's, and the deadline to put up or walk away is August 12.
Prologis has made what it calls a best and final possible offer for Segro, exchanging 0.0920 new Prologis shares for each Segro share with a partial cash alternative of up to £3.5 billion. That values each Segro share at 1,031.7 pence and the company at roughly £14 billion. Segro’s board says it would be minded to recommend those terms.
Read that carefully, because most coverage is getting it wrong. This is not an agreed acquisition. It is a possible offer under Rule 2.4 of the UK Takeover Code, and Prologis has until 5 p.m. on August 12 to announce a firm intention to bid or walk away.
Why it matters
Segro owns about 117 million square feet of European industrial and data center space valued near £22 billion. Prologis is already the largest industrial landlord on earth. Putting them together would create a single owner with pricing power across the two deepest logistics markets in the world, at a moment when industrial fundamentals are visibly softening in the United States.
The data center piece is the part developers should not skip past. Segro’s portfolio includes European data center assets in exactly the power-constrained markets where new capacity is hardest to entitle. Buying a landlord is now a faster route to sited, powered capacity than building one, and this deal is the largest expression of that logic so far.
The numbers
0.0920 Prologis shares per Segro share, plus a cash alternative capped at £3.5 billion, or 25 percent of total consideration. Including the expected final dividend of up to 22.56 pence, total value reaches 1,054.3 pence a share. This is the fourth approach, after reported bids at roughly $16.6 billion in late June and two at about $18.2 billion. Prologis has contractually agreed to establish a secondary London listing on completion of any deal.
Prologis’ most recent SEC filing, its July 16 second-quarter 8-K, still uses the words possible offer. No filing on the July 22 terms had appeared as of today.
What’s next
August 12 is the real date. Segro’s board support is conditional on confirmatory due diligence and final documentation, and Prologis has said a deal is not guaranteed. More national coverage.