Prologis, the world’s largest owner of industrial real estate, said it made a £12.6 billion ($16.63 billion) takeover approach for smaller UK peer Segro, which the British company’s board turned down.
The US company disclosed the unsolicited proposal on Wednesday. Under the terms, Segro shareholders would receive 0.084 new Prologis shares for each Segro share held, implying a value of 925 pence a share. That represents a 25% premium to Segro’s closing price on Tuesday, Prologis said.
Segro’s board unequivocally rejected the proposal, according to Prologis. The London-listed real estate investment trust focused on warehouse and industrial space did not immediately respond to a request for comment from The Wall Street Journal.
Prologis said it sees a clear strategic rationale for a combination. The San Francisco-based company urged Segro shareholders to encourage the board to engage with Prologis and allow them to consider an offer. The statement signals that Prologis may attempt to pursue the deal directly with shareholders if the board remains opposed.
Prologis operates a portfolio of industrial and logistics properties across the Americas, Europe, and Asia. Segro, a real estate investment trust, owns and manages warehouse and industrial space primarily in the UK and continental Europe.