Prologis Locks In £14.3B SEGRO Deal with Full Terms and Financing
PLD sits 36% above its 52-week low of $103.41.
Summary
Prologis has formalized its £14.3 billion acquisition of SEGRO plc, detailing the share exchange ratio, a partial cash alternative, and a new £3.575 billion term loan facility to fund the deal.
Key Events · M&A and Partnerships · PLD
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Definitive Acquisition Agreement Signed
Prologis entered into a Co-operation Agreement with SEGRO plc to acquire the entire issued share capital of SEGRO for approximately £14.3 billion, via a court-sanctioned scheme of arrangement.
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Exchange Ratio and Partial Cash Alternative
SEGRO shareholders will receive 0.0920 New Prologis Shares per SEGRO share, with an option to elect up to £3.5 billion in cash (258 pence per share basic entitlement), reducing the share component to 0.0690 shares.
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Financing Secured
Prologis, L.P. entered into a £3.575 billion Term Loan Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent, to fund the cash portion of the acquisition.
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Expected Closing and Conditions
The combination is expected to close in the first half of 2027, subject to SEGRO shareholder approval, court sanction, regulatory clearances, and listing of new Prologis shares on the NYSE and London Stock Exchange.
Analysis · PLD · Real Estate & Construction
A definitive agreement has been struck to acquire SEGRO plc for roughly £14.3 billion through a mix of stock and cash. Structured as a court-sanctioned scheme of arrangement, the deal gives SEGRO shareholders 0.0920 Prologis shares for each SEGRO share, alongside a partial cash alternative capped at £3.5 billion. Funding for the acquisition comes from a new £3.575 billion term loan facility. This filing lays out the complete legal framework—including the Co-operation Agreement and financing terms—and refreshes risk factors to address integration hurdles and dilution for current Prologis shareholders. Closing is anticipated in the first half of 2027, pending regulatory and shareholder approvals.
At the time of this filing, PLD was trading at $141.07 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 filing was assessed with positive market sentiment and an importance score of 9 out of 10.