Key facts
- Segro has rejected a £12.6bn takeover bid from US rival Prologis.
- The FTSE 100 firm called the offer "opportunistic, one-sided and inadequate."
- Segro's CEO David Sleath stated the bid undervalues the company's data centre and logistics portfolio.
- The company expects significant value uplifts from its industrial, logistics, and data centre pipelines.
- Segro reported £53m in new headline rent in the first half of 2026.
Segro, a UK-based real estate investment trust, has issued a strong rejection of a £12.6bn takeover bid from its US rival, Prologis. The FTSE 100 firm described the offer as "opportunistic, one-sided and inadequate," arguing that it significantly undervalues the company.
Segro's chief executive, David Sleath, stated that Prologis's interest was driven by a desire to capitalize on the recent dip in Segro's share price, which he attributed to the Iran war. He highlighted Segro's substantial investments in data centres and its superior portfolio compared to Prologis'. Sleath also accused the US firm of proposing a deal that would "materially dilute" Segro shareholders' exposure to its unique and valuable assets, exchanging them for a less desirable stake in Prologis's different, more US-focused portfolio.
Despite Prologis's offer representing a nearly 25% premium on Segro's share price at the time of the bid, Segro emphasized its potential for significant value increases. The company's net asset value stands at 905p per share, with expected boosts of 103p per share from its £1.6bn industrial and logistics pipeline and an additional 139p per share from its £2.5bn data centre pipeline. Sleath also pointed out that Prologis failed to account for benefits like lower tax costs that would accrue from the acquisition, stating shareholders should be compensated for these.
Segro reported a "very encouraging start to the year" in the first half of 2026, securing £53m in new headline rent, a notable increase from £31m in the previous year. On Wednesday, Segro's shares slipped 1% to 868p, though they remain up 22% year-to-date.