Prologis Launches 15M-Share Offering to Fund $19.2B Segro Takeover
PLD sits 36% above its 52-week low of $103.41.
Summary
Prologis is selling 15 million shares in a public offering, with an option for underwriters to buy 2.25 million more. The proceeds are earmarked for general corporate purposes, including the recently agreed £14.3 billion ($19.2 billion) all-share acquisition of UK logistics firm Segro. At the current price of $141.15, the base offering would raise roughly $2.1 billion, diluting existing shareholders by about 1.6% before the overallotment. This follows the formal deal announcement earlier today and the Q2 earnings report that highlighted the Segro bid. The offering signals that Prologis is moving quickly to secure equity financing for the deal, but the dilution and potential overhang could pressure the stock near-term. The Segro acquisition is expected to close later this year, pending shareholder and regulatory approvals.
At the time of this announcement, PLD was trading at $141.15 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $137.2B. The 52-week trading range was $103.41 to $153.35. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: PR Newswire.