𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Segro’s US suitor has revealed a third takeover approach worth £13.5 billion has been rejected by the British warehouse property developer as it steps up its campaign to secure a deal.

San Francisco-based Prologis said it put forward a new cash-and-stock proposal to buy FTSE 100 firm Segro on July 16 worth £9.93 a share.

This is higher than the £9.25 a share initial approach it made a month earlier worth £12.6 billion, and an improvement on the second proposal tabled on July 10, according to Prologis.

It also marks a 34% uplift on Segro’s £7.42 closing share price the day before its takeover interest was made public, the group said.

But Segro rebuffed its latest approach, saying it undervalues the firm and continues to be “opportunistically timed” after recent share price declines.

Prologis is taking its bid aims to Segro investors and ramping up pressure on the UK firm’s board.

It said: “Prologis believes the third proposal provides a compelling opportunity for both sets of shareholders and urges Segro shareholders to encourage their board to recommend the combination.”

Prologis has now included a cash element for the bid of up to £2.7 billion – or 20% of the total amount.

It is also looking at the possibility of having a secondary listing in London following any potential deal with Segro, “if there is sufficient investor demand”.

“For any such secondary listing to be feasible, Prologis expects that Segro board engagement with Prologis will be required,” it said.

Prologis said shareholders face a “clear choice”.

“Prologis’ proposal provides upfront value, greater flexibility and long-term upside opportunity.

“Segro’s standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding and an unjustified valuation,” it said.

Segro last month said the initial approach “falls a long way short of Segro’s own views on value”, and confirmed it had met with Prologis after the third proposal to see if it was prepared, and able, to increase the offer.

Prologis “provided no new information in this meeting and made no improvement to the further revised proposal”, Segro said.

Segro chairman Andy Harrison said: “The board does not believe that Prologis’s latest proposal to acquire Segro reflects the quality, scarcity or long-term prospects of Segro’s portfolio and platform and has been rejected unanimously by the board.

“The board is seeking to maximise value for shareholders and would further engage on any proposal which appropriately reflects the considerable embedded value and prospects of our business.”

The bid interest in Segro comes after Segro shares have dropped sharply since reaching a peak in 2021 above £14 a share, falling to just over £6 a share last year.

Prologis has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.