Merchant West Sanlam Collective Investments Global Property Income Fund on SEGRO plc
Thesis
SEGRO became an event-driven holding during the quarter after Prologis made an indicative all-share acquisition approach. The proposed exchange ratio implied a value of 925 pence per SEGRO share and a 24.6% premium to the undisturbed price, but SEGRO's board rejected the approach as opportunistic and inadequate. Prologis nevertheless reiterated the strategic and financial rationale at quarter-end, leaving the possibility of a firm bid alive under the UK Takeover Code. The key near-term catalyst was therefore whether Prologis would make a firm offer or walk away by the stated July deadline. P(1) Merchant West SCI Global P…
“SEGRO's board unequivocally rejected the proposal on 23 June 2026.”
Key risks
- SEGRO's board rejected the indicative proposal
- Prologis could decide to walk away instead of making a firm bid