Prologis approach sends Segro shares up 16% despite rejection

Prologis’ approach to buy Segro lifted Segro shares despite the UK logistics landlord rejecting the proposal. Prologis said on Wednesday it made an all-share takeover offer valuing Segro at about GBP 12.6 billion, but Segro’s board “unequivocally rejected” it. In London, Segro shares rose 16% to 859.60 pence, making it the top performer in the FTSE 100, while the index was up 0.1%. Prologis proposed issuing 0.084 new Prologis shares for each Segro share, implying 925 pence per Segro share based on Prologis’ Tuesday close of USD 145.30 and a GBP/USD rate of 1.32. The offer represented a 24.6% premium to Segro’s 742p close. Prologis urged shareholders to encourage engagement, and under UK takeover rules it must announce a firm offer or confirm it will not proceed by July 22.