Prologis piles pressure on SEGRO as takeover deadline looms

Prologis has intensified its pursuit of SEGRO PLC (LSE:SGRO) , publicly attacking the warehouse landlord's defence a day before a deadline that forces the US giant to bid or walk away. The FTSE 100 property group rejected a third approach from Prologis on Monday, worth 993p a share, or about £13.5 billion. SEGRO, Europe's largest listed real estate investment trust, has dismissed the offer as opportunistic and one that fails to reflect the quality and scarcity of its logistics portfolio. Under Takeover Panel rules, Prologis must announce a firm intention to bid or step away by 5 pm on Tuesday, the so-called put up or shut up deadline. In a combative statement, Prologis said senior representatives met SEGRO management in London on Sunday but found no credible path to a recommended deal. It accused the SEGRO board of relying on an aspirational valuation built on unrealistic assumptions. Prologis argued that consensus forecasts imply annual earnings growth of just 4.7% over three years, too weak to justify SEGRO trading at its net asset value. SEGRO's NAV fell from 925p to 905p a share in the six months to 30 June, an unusual decline to disclose during a bid defence. Prologis said its latest terms represented a 9.7% premium to that figure, among the highest premiums to NAV paid for a UK property company in a decade. The US firm also invoked history, noting the SEGRO board rejected an earlier approach in March 2024 within 72 hours. That decision, Prologis claimed, has left shareholders 36.5% worse off. The proposal comprises 0.089 new Prologis shares for each SEGRO share, with a partial cash alternative of up to £2.7 billion, equal to a fifth of the total. Prologis has also dangled the prospect of ...