U.S.-based Prologis, the world's largest industrial real estate owner, confirmed it made a £12.6 billion ($16.6 billion) all-share takeover proposal for its smaller U.K. rival, Segro. The offer, first made on June 16, valued Segro at 925 pence per share, a nearly 25% premium to its closing price on June 23.
Segro's board "unequivocally rejected" the proposal. In response, Prologis went public with the offer, urging Segro's shareholders to encourage their board to engage in discussions. Prologis stated that a combination would create a compelling opportunity, giving Segro investors a 10.5% stake in a larger global platform with greater financial resources to develop Segro's pipeline. Under U.K. takeover rules, Prologis has until July 22 to make a firm offer or withdraw.