Prologis Seeks SEGRO Shareholders' Support to Spring an Offer for Merger

MT Newswires Live07-09 17:12

Prologis (PLD) has urged shareholders from the UK's SEGRO to encourage the company's board to engage with Prologis to allow a binding offer to be put to the stockholders.

Prologis published a new investor presentation to highlight "significant potential benefits" of a merger following "constructive engagement" with SEGRO's shareholders, as well as SEGRO's presentation published on Tuesday.

SEGRO's public market valuation reflects its "structural constraints," Prologis said, adding that it brings both a "superior platform and a larger data center opportunity." Prologis further pointed out that its platform creates advantages that SEGRO "cannot" replicate.

Prologis said it noted SEGRO's new adjusted earnings guidance of 50 pence ($0.67) per share by 2030, which implies a compound annual growth rate of 6.4%.

"This will require a higher growth rate in the later years of the forecast based on the lower near-term consensus growth. This growth will require significant investment and new capital, and is by no means certain," the company said.

Shares of Prologis fell 1.3% in premarket activity Thursday.

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