Analysts suggest Prologis has capacity to increase its offer for UK rival Segro following board dismissal of initial bid.
Prologis Inc proposed a £12.6 billion all-share takeover of Segro PLC at 925p per share, a 24.6% premium to Segro’s undisturbed price. Segro’s board rejected the bid, calling it opportunistic and undervalued relative to its net asset value and growth prospects.
The initial offer matched Segro’s last reported net asset value but left a 20% discount to NAV in current trading. Analysts argue the bid understates Segro’s long-term potential, with Prologis’s $139 billion market value providing ample room for a higher offer.
Stifel’s John Cahill and AJ Bell’s Dan Coatsworth expect Prologis to return with an improved proposal, citing the public bid as an opening move in negotiations.