Prologis, the US industrial property giant, announced a "best and final" proposal to acquire Segro (LSE:SGRO), valuing the UK warehouse landlord's share capital at approximately £14bn.
The new terms offer 0.0920 Prologis shares per Segro share, up 9.5% from Prologis's initial proposal, plus a partial cash alternative of up to £3.5bn at a fixed 1,031.7p per share.
That price represents a 14% premium to Segro's pro forma adjusted net asset value of 905p as of 30 June, and a 39% premium to Segro's closing share price the day before the offer period began.
Prologis said the offer will not be increased further unless a third party emerges with a rival bid or the Takeover Panel grants an exception.
"We run Prologis with discipline and this is our best and final offer", said Dan Letter, Prologis's chief executive.
Existing Segro shareholders would hold approximately 8.9% of the enlarged Prologis if the cash alternative is fully taken up.
Prologis asked Segro to seek an extension from the Takeover Panel to the 5pm deadline on 22 July, giving both sides time to agree terms for a recommended firm offer.
News Intelligence what this means for the company
Prologis has raised its takeover proposal for Segro to £14bn (9.5% higher than its previous bid) and declared it final, offering 0.0920 Prologis shares per Segro share plus up to £3.5bn in cash at 1,031.7p per share—a 14% premium to Segro's June NAV and 39% above the pre-offer closing price. The move comes ahead of a 22 July Takeover Code deadline, with Prologis signalling it will not increase further unless a rival bidder emerges. This represents the third iteration of Prologis's approach after Segro rejected two earlier proposals in early and mid-July.
The 'best and final' declaration removes near-term upside optionality for Segro shareholders betting on a higher bid, but the 39% premium to the pre-offer price and the cash alternative provide a concrete exit valuation. Whether this resolves the takeover hinges on Segro's board recommendation and the absence of a rival bidder.
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