UK industrial and logistics investor developer giant SEGRO rejects third offer from US rival Prologis
UK FTSE listed investor developer SEGRO has rejected a third offer from US rival Prologis stating that Prologis’s proposals have been opportunistically timed to capitalise on a dislocated share price.
By Liza Helps, Property Editor, Logistics Matters
THE REVISED offer of £13.5 billion is a £2.7 billion increase on its previous offer but according to SEGRO fails to reflect the “quality, scarcity or long-term prospects” of the portfolio. SEGRO’s board has stated that it maintains a standalone valuation closer to £18 billion in the coming years.
IN a statement SEGRO said its board had ‘carefully reviewed the Further Revised Proposal [put forward by Prologis on Friday], and together with its advisers, concluded that SEGRO’s compelling growth strategy and standalone prospects underpin superior value creation versus the Further Revised Proposal. Accordingly, the Board unanimously rejected the Further Revised Proposal.
Despite this rejection, SEGRO engaged and met with Prologis management yesterday to understand Prologis’ ability to improve its financial terms to a level that could be capable of being recommended by the Board. Prologis provided no new information in this meeting and made no improvement to the Further Revised Proposal.
The Board noted that should Prologis submit an improved proposal that more appropriately reflects the value of SEGRO’s compelling prospects, SEGRO would continue to make themselves available to engage further with Prologis.
The statement concluded: “SEGRO urges shareholders to take no action in relation to Prologis’s Revised Proposal.”
