Segro PLC (LSE:SGRO) has agreed to a £14 billion takeover by US logistics property group Prologis, bringing one of Britain's largest real estate investment trusts under American control.
Under the recommended offer, investors in the FTSE 100 warehouse owner will receive 0.092 Prologis shares for each share they own. They can instead elect to receive 25% of the consideration in cash, comprising 258p and 0.069 Prologis shares.
The cash element is capped at £3.5 billion and may be scaled back if demand exceeds the amount available.
Based on Prologis's share price and exchange rates on 21 July, when the Segro board said last month that it was minded to accept a deal, the deal valued Segro at 1,031.7p per share.
This values the company at around £14 billion, a 39% premium to its closing price before the offer period began and a 14.4% premium to its net tangible asset value.
However, the value had fallen to 998.1p per share by this week, or around £13.5 billion, because most of the consideration is linked to the Prologis share price and sterling-dollar exchange rate.
Segro shareholders will also retain the 10.14p interim dividend and could receive a final dividend of up to 22.56p if it is declared before completion.
The combination will create a property group with around £200 billion of assets under management and a European portfolio covering about 368 million square feet. Segro investors would own approximately 8.9% of the enlarged company.
Prologis said the acquisition would be broadly neutral or slightly dilutive to earnings in the first full year after completion, assuming expected cost savings are achieved.
The UK company's board unanimously recommended the deal, which requires shareholder, court and regulatory approval. Completion is expected in the first half of 2027, with Prologis planning a secondary London listing.
Prologis has only secured irrevocable undertakings covering 0.245% of issued share capital, from the Segro board's personal holdings.
