Segro Rejects Non-Binding Proposal from Prologis at 881 Pence per Share
The Board of Directors of Segro has unanimously rejected the acquisition proposal from Prologis, stating that the offer does not reflect the intrinsic value of the group or its potential for future growth.
Unanimous Rejection of an Offer Deemed Insufficient
The Board of Directors of Segro has 'unanimously and unequivocally' rejected the acquisition proposal made by Prologis on June 24, 2026. The offer covers all issued and to be issued capital of Segro, at a rate of 0.084 Prologis shares for each Segro share, valuing each share at 881 pence as of the closing on June 29, 2026.
According to Segro, this proposal 'falls far short' of the group's internal valuation. The board emphasizes that the offer has lost 5% of its value since the start of the offer period on June 24, dropping from 925 pence per share.
Andy Harrison, Chairman of the Board, stated that Prologis is attempting 'to acquire Segro at a low price' at a time when the stock has experienced market dislocation following the conflict in the Middle East, 'at a price that reflects none of the qualities, rarity, and growth built into the business'.
Valuation Arguments Invoked by Segro
Segro justifies its rejection with three main arguments. First, the group's portfolio is 'unique and irreplicable', consisting of urban assets in Europe's largest cities with constrained supply, intentionally shaped over several decades to outperform in the long term.
Next, Segro believes that its substantial value exceeds the net tangible assets (NTA), particularly due to its exceptional development pipeline in logistics, industrial real estate, and data centers, as well as the scarcity of its portfolio.
Finally, the group asserts that it does not need Prologis to unlock its value creation, relying on its unique operational platform of significant scale, a proven execution track record, and a strong balance sheet to generate new sources of revenue and growth.
Regulatory Timeline and Next Steps
Segro will provide additional details on its growth strategy and valuation during the week of July 6, 2026. This presentation will cover in detail the group's development pipeline and its strategy in data centers, elements that the board believes are overlooked by Prologis's proposal.
According to the rules of the British Takeover Code, Prologis has a deadline of July 22, 2026, which is 28 days after June 24, to either announce a firm offer in accordance with Rule 2.7 or communicate its intention not to make an offer. This deadline may be extended only with the consent of the Takeover Panel.
