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Segro PLC on Wednesday said a takeover proposal from Prologis Inc ‘falls a long way short’ of its assessment of the company’s value and was ‘opportunistically timed’, after the US logistics property giant disclosed an approach valuing the UK warehouse landlord at £12.6 billion. Shares in Segro jumped 16% to 864.00 pence on Wednesday morning in London, making it the top performer in the FTSE 100, while the blue-chip index was marginally higher. Earlier, Prologis revealed it had approached Segro with an all-share proposal under which Segro shareholders would receive 0.084 new Prologis shares for each Segro share. Based on Prologis’ closing share price of $145.30 on Tuesday and a GBP/USD exchange rate of 1.32, the proposal implied a value of 925p per Segro share and valued Segro’s entire issued and to-be-issued share capital at approximately £12.6 billion. Segro confirmed it received the unsolicited proposal on June 16 and said its board had unanimously and unequivocally rejected it. ‘The proposal falls a long way short of Segro’s own views on value,’ the company said. The board said it had considered the approach with its advisers and concluded that it was ‘opportunistically timed’ and sought to take advantage of ‘the clear dislocation between Segro’s current share price and its highly attractive underlying business and strong prospects’. Segro said recent geopolitical events had adversely affected trading valuations across the UK and European real estate sectors relative to US real estate investment trusts. The company pointed to its strategy, balance sheet strength and development opportunities as reasons for rejecting the proposal. ‘Momentum is building in Segro’s occupational markets and the company has a large and attractive development pipeline, including an exceptional data centre platform, as well as a long track record of delivery,’ it said. ‘Accordingly, the board remains very confident in Segro’s ability to capture substantial value for its shareholders during the coming years.’ Prologis said the proposal represented a 24.6% premium to Segro’s closing share price of 742p on Tuesday, a 26.7% premium to its one-month volume-weighted average share price and a 31.4% premium to its three-month average. The San Francisco-based logistics real estate investment trust argued the combination would provide Segro shareholders with exposure to the world’s largest logistics REIT, with a market capitalisation of $140.9 billion, while retaining approximately 10.5% ownership of the enlarged group. Under UK takeover rules, Prologis must by July 22 either announce a firm intention to make an offer or confirm that it does not intend to proceed, unless the deadline is extended by the Takeover Panel. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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