Key facts
- Segro rejected a £12.6 billion takeover bid from U.S. real estate firm Prologis.
- The offer valued Segro shares at 925p, a 24.7% premium to Tuesday's closing price.
- Prologis urged Segro shareholders to encourage the board to engage with the proposal.
- Prologis cited Segro's discount to net asset value and balance sheet limitations.
- Segro shareholders would have received 0.084 new Prologis shares per share held.
- Prologis must make a formal bid or withdraw by July 22 under UK takeover rules.
Segro, a prominent FTSE 100 warehouse landlord, has rejected a £12.6 billion ($16.62 billion) takeover proposal from U.S. real estate giant Prologis. The unsolicited, all-share offer valued Segro's shares at 925 pence each, representing a 24.7% premium to its closing price on Tuesday. Prologis urged Segro shareholders to encourage the company's board to engage with the U.S. firm, arguing that Segro trades at a persistent discount to its net asset value and faces structural constraints, including balance sheet limitations, that prevent it from fully unlocking value in its development and data center pipeline.
Under the terms of the proposed combination, Segro shareholders would have received 0.084 new Prologis shares for each share they held. The approach underscores the vulnerability of UK-listed property companies trading at steep discounts to underlying asset values. Segro stated it has a clear strategy, supported by a strong balance sheet and a proven operating platform, and remains confident in its ability to generate substantial value independently. Under British takeover rules, Prologis has until July 22 to unveil a firm offer for Segro or walk away.