Prologis announced on Wednesday that Segro had rejected its recommended all-share takeover proposal valuing the British warehouse landlord at £12.6 billion ($16.62 billion). The U.S.-based logistics real estate investment trust said it is now seeking intervention from Segro shareholders to encourage the company's board to enter discussions.
Prologis said the FTSE 100-listed Segro has been trading at a ‘‘persistent discount’’ to its net asset value and flagged what it described as structural constraints, including limitations on Segro's balance sheet that, in Prologis' view, prevent the unlocking of value across Segro's development pipeline and its artificial intelligence data center assets.
In a statement, Prologis made a direct appeal to investors: "Prologis 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," the company said.
Segro was not immediately available for comment following the announcement.
Details of the proposed exchange remained as set out in Prologis' approach: Segro shareholders would have received 0.084 new Prologis shares for each Segro share they hold. That ratio implied a value of 925 pence per Segro share, representing a 24.7% premium to Segro's closing price on Tuesday.
Prologis' approach is the latest example of a U.S. buyer targeting a London-listed company amid a period in which weaker UK valuations have been attracting interest from better-capitalized American firms. Under British takeover rules, Prologis has until July 22 to either table a firm offer for Segro or withdraw its approach.
The announcement also included the exchange-rate reference used in the statement: ($1 = 0.7580 pounds).
The situation remains fluid. Prologis has taken the public step of asking Segro investors to press their board to engage, while Segro's response has not been made public. The July 22 deadline under takeover regulations sets a finite window for the bidder to move to a binding proposal or step back.