PLD/SGRO: SGRO Announces it would be Minded to Recommend PLD's Latest Bid and Receives Extension

Research evidence excerpt

PLD/SGRO: SGRO Announces it would be Minded to Recommend PLD's Latest Bid and Receives Extension

July 22, 2026

Investment Conclusion

●What happened: This afternoon (London Time), the Board of SEGRO announced that they have unanimously

concluded that the financial terms of the latest proposal by PLD are at levels that it would be "minded"

to recommend to SEGRO shareholders. The extension is contingent upon PLD officially making a firm offer,

pursuant to Rule 2.7 of the Code. Additionally, the Board of SEGRO has requested, and the Takeover Panel

has consented to, an extension to the date by which PLD must announce a firm offer. An announcement must

now come by no later than 5:00 PM (London time) on August 12th, 2026 and will only be extended with the

consent of the Takeover Panel. Following SEGRO's announcement, PLD announced that they welcome the

recommendation and extension request, along with listing the only conditions where they would change their

Best and Final Proposal (see here for the release and comments below).

●Implications. We highlight estimated accretion assuming 100% stock election in Exhibit 1 below assuming

differing levels of G&A synergy. Notably, we estimate the transaction to be roughly earnings neutral to dilutive,

initially, absent GAAP MTMs (calculations available upon request and let us know if a walk through would help).

We estimate MTMs and incremental upside from in process development would modestly improve accretion,

with further accretion potential from development (particularly in data centers) yet to commence. We think part

of the true value PLD sees in SEGRO is the potential development opportunity, particularly in data centers.

●What happens from here. We note the following: