Prologis' Segro Bid Rejected; Shares Soar 16%

made an all-share takeover proposal for UK warehouse landlord Segro PLC, valuing it at approximately GBP12.6 billion (925 pence per share), which Segro's board unequivocally rejected, yet Segro's shares surged 16% to 859.60 pence. Prologis's offer 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, and a 31.4% premium to its three-month average.

Prologis argued the transaction would give Segro shareholders exposure to the world's largest logistics real estate investment trust, retaining approximately 10.5% ownership of the combined group. The US company highlighted benefits such as a broader global platform, a stronger balance sheet, and greater capital resources, which Prologis believes accelerate the development of Segro's logistics and data centre pipeline.

Prologis also noted its lower leverage, with net debt to enterprise value of 22% compared to 37% for Segro, and net debt to adjusted Ebitda of 4.8 times versus 8.4 times. Prologis believes Segro has been constrained by its balance sheet and persistent discount to EPRA net tangible assets, arguing a combination unlocks growth opportunities.

Prologis urged Segro shareholders to encourage the board to engage. Under UK takeover rules, Prologis must by July 22 either announce a firm intention to make an offer or confirm it does not intend to proceed, unless the deadline is extended by the Takeover Panel, as reported by Alliance News.