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

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.