Segro has accepted a £14billion takeover offer from Prologis, ending a weeks-long battle that will see the British warehouse firm bought by its US rival.
The FTSE 100-listed company said it had accepted the deal, under which Prologis will pay 1032p for each Segro share. That represents a 39 per cent premium to Segro's closing price on June 23, the day before it went public with its interest.
Segro dropped its opposition to the takeover at the end of last month, having rejected three earlier bids from Prologis that suggested the company was worth almost £18billion. Prologis's initial offer of 925p per share valued Segro at £12.6billion, before the British firm said the "best and final" offer of more than £14billion was acceptable.
How shareholders will be paid
In a statement to investors, Prologis said Segro shareholders will be paid in stock, with a partial cash alternative of up to £3.5billion.
Segro is the fifth FTSE 100 firm to have agreed to a takeover this year, following laboratory testing firm Intertek, insurer Beazley, City institution Schroders and energy firm DCC. Other firms that have been targeted include Easyjet, Rotork, Mitie and Tate & Lyle, fuelling fears that foreign predators are circling undervalued British firms hoping to buy them cheaply.
Valuation dispute
Prologis's final proposal remains below the 1300p per share price tag put on Segro by commercial property experts CBRE, which valued the company at close to £18billion. Segro's board had held up that valuation as evidence Prologis was trying to buy the firm cheaply, but Prologis said the valuation was "unrealistic."
Segro's board is understood to have softened its stance after talks with investors, with some suggesting the offer represented a good deal given geopolitical tensions. Prologis has agreed to establish a secondary listing of its shares on the London stock market, given that Segro will disappear from the exchange.
Segro shares rose 0.85 per cent to 969.2p on the news, having gained 36 per cent so far this year.
