CEO says improved offer follows shareholder feedback
Prologis, the world’s largest owner of industrial real estate, said Wednesday it is sweetening its bid to acquire UK rival Segro to about £14 billion ($18.72 billion), a 9.5% increase over its initial proposal, but ruled out further increases.
The improved offer comes after Segro’s board rejected a previous proposal from Prologis earlier this week, though the British company said it would be available to engage with an improved offer.
Under the terms of the offer, Prologis is offering 0.092 new shares for each Segro share tendered, plus a partial cash alternative of up to £3.5 billion, or about a quarter of the total price.
“We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the Segro board,” Prologis Chief Executive Dan Letter said.
Segro shares climbed 4.7% after the new bid was disclosed. Segro did not immediately respond to a request for comment.