SEGRO said on June 24 that it had received an unsolicited possible all-share offer from Prologis on June 16 for its entire issued and to be issued share capital, consisting of 0.084 new Prologis shares for each SEGRO share.
Based on a Prologis share price of $145.3 and a GBP:USD exchange rate of 1.32 at the June 23 market close, the proposal implied a value of 925 pence per SEGRO share and an equity value of about £12.6 billion. SEGRO said its board unanimously rejected the proposal on June 23.
Prologis separately confirmed the approach and said the proposal would leave SEGRO shareholders owning about 10.5% of the combined company’s issued share capital if completed. Prologis said the announcement was made under Rule 2.4 of the UK Takeover Code and that there is no certainty a firm offer will be made.
Following the public identification of Prologis, an offer period for SEGRO began at 07:00 London time on June 24. Prologis must by 5:00 p.m. London time on July 22 either announce a firm intention to make an offer under Rule 2.7 or state that it does not intend to make an offer under Rule 2.8, unless the Takeover Panel agrees to an extension.