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UK warehouse landlord Segro rejects £12.6bn takeover offer from US rival

UK warehouse landlord Segro rejects £12.6bn takeover offer from US rival

Summary

UK warehouse landlord Segro rejected a £12.6 billion takeover offer from US company Prologis. Prologis offered 24.6% more than Segro’s share price but Segro’s board said the offer undervalued the company and its future prospects.

Key Facts

  • Prologis publicly offered to buy Segro, a FTSE 100 company, for £12.6 billion.
  • The offer proposed exchanging each Segro share for 0.084 Prologis shares, valuing Segro shares at 925p each.
  • This offer was 24.6% higher than Segro’s closing share price on the day of the offer.
  • Segro’s board unanimously rejected the offer, saying it did not match their view of the company’s value.
  • Segro builds and rents warehouses, serving customers like Amazon and Netflix.
  • The company grew quickly during the Covid pandemic but its share price has fallen about 40% since early 2022.
  • Segro said market problems in the UK and Europe have affected its share price compared to US companies.
  • Prologis may try to improve its offer, but experts say the deal could lead to more foreign takeovers in the UK property sector.
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