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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