PLD
Segro rebuffs enhanced $18.2B Prologis takeover bid
Article Summary
HOLD- Prologis Inc. (NYSE: PLD) announced Monday that its enhanced $18.2 billion bid for Segro Ltd. (LSE: SGRO) represented a 6% increase above its initial offer and included a 20% cash component, representing a 41% premium to Segro's three-month weighted average share price.
- The latest offer would give Segro shareholders .089 new Prologis shares for each share held, with the option to receive up to 20% in cash, up from the prior two all-stock offers.
- Prologis asserts that a business combination would allow Segro access to a larger logistics real estate network and lower cost of capital, while previously saying Segro trades at a discount because it is required to make dilutive equity issuances to fund projects.
- Segro rejected a March 2024 all stock offer, calling it opportunistic as it relies on flawless execution of a significant development pipeline, substantial third-party funding, and an unjustified valuation.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.4% | 25% | 35.0 ptsBelow Screener (7.4%) - Weak growth |
| EPS Growth Next 5Y ? | 2.0% | 25% | 10.0 ptsVery Weak (2.0%) - Minimal expectations |
| Target Price Upside ? | 7.2% | 20% | 35.0 ptsBelow Screener (7.2%) - Target: $157.75 vs Current: $147.20 |
| Gross Margin % ? | 44.5% | 15% | 60.0 ptsSolid (44.5%) - Decent margins |
| Drawdown from 52-Wk High ? | -4.0% | 15% | 20.0 ptsBarely a Dip (-4.0%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About PLD
- Prologis, Inc. is a self-administered and self-managed REIT and is the sole general partner of Prologis, L.P. through which it holds substantially all of its assets.
- We operate Prologis, Inc. and Prologis, L.P. as one enterprise and, therefore, our discussion and analysis refer to Prologis, Inc. and its consolidated subsidiaries, including Prologis, L.P.
- We invest in real estate through wholly owned subsidiaries and other entities through which we co-invest with partners and investors (co-investment ventures).
- We have a significant ownership interest in the co-investment ventures, which are either consolidated or unconsolidated based on our level of control of the entity.
- Prologis, Inc. began operating as a fully integrated real estate company in 1997 and elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (Internal Revenue Code or IRC).
- We believe the current organization and method of operation enable Prologis, Inc. to maintain its status as a REIT.
- Prologis, L.P. was also formed in 1997. We operate, manage and measure the operating performance of our properties on an owned and managed (O&M) basis.
- Our O&M portfolio includes our consolidated properties as well as properties owned by our unconsolidated co investment ventures, which we manage.
- We make operating decisions based on our total O&M portfolio as we manage the properties without regard to their ownership.
- Prologis, Inc. was incorporated in 1983 in Maryland and is based in San Francisco, California.