Prologis sweetens £13.5bn SEGRO bid with £2.7bn cash element as third proposal rejected

Prologis has made a third takeover proposal for SEGRO PLC (LSE:SGRO) , valuing the FTSE 100 warehouse landlord at approximately £13.5 billion and introducing a partial cash alternative, only for the board to reject the approach once again. The US logistics property giant's third proposal, made on 16 July and rejected the following day, comprises 0.0890 new Prologis shares for each SEGRO share, a 6% increase on its original terms. It also includes a partial cash alternative of up to £2.7 billion, representing 20% of the total consideration, at a fixed price of 1,000p per SEGRO share, subject to pro-rata scale-back. Assuming a shareholder elects for 20% cash, the proposal values each SEGRO share at 993p based on Friday's closing prices. That represents a premium of 33.8% to SEGRO's undisturbed share price of 742p on 23 June, the day before the offer period began, and 9.7% above its pro forma adjusted net asset value of 905p. The disclosure sets up a tense final act, with Prologis facing a deadline of 5 pm on Tuesday, 22 July, to either announce a firm intention to make an offer or walk away under the Takeover Code. Prologis also made a second proposal on 10 July, which was rejected two days later, and confirmed it would explore a secondary listing of its shares in London if there is sufficient investor demand. The company urged SEGRO shareholders to press their board to recommend a deal, and mounted a pointed attack on the defence case SEGRO set out earlier this month. It said SEGRO's 8% discount rate understates the execution risk attached to speculative, long-dated and often un-zoned development projects, and pointed to the revocation of data centre entitlements in P...