Segro rejects latest £13.5bn tilt by Prologis
By Abigail Townsend
Date: Monday 20 Jul 2026
(Sharecast News) - Britain's Segro has rejected a sweetened £13.5bn approach from US logistics giant Prologis, it confirmed on Monday, calling the latest approach was "opportunistic".
Prologis made its fresh offer of 0.089 new Prologis shares for each Segro share late last week. It includes a partial cash alternative of up to £2.7bn and values Segro at 993p per share, a 6% increase on its first proposal.
Prologis confirmed the approach - its third since early June - had been rejected, and urged shareholders to back the offer, arguing that the Segro assessment of its own value was "unrealistic".
However, Segro said the tilts had been "opportunistically tied to capitalise on a dislocated share price and just as Segro's markets are inflecting and momentum is accelerating.
"The effect would be to transfer the benefits of Segro's considerable embedded value and this significant progress to Prologis shareholders before they are fully reflected in Segro's earnings and valuations."
The landlord also confirmed it had received a first unsolicited proposal from Prologis in March 2024, which had been rejected on the basis it implied only a 10% premium to Segro's prevailing share price, and failed to recognised the firm's "compelling" standalone prospects.
Chair Andy Harrison said the board did not believe the most recent proposal reflected "the quality, scarcity or long-term prospects of Segro's portfolio and platform".
He continued: "The board is seeking to maximise value for shareholders and would further engage on any proposal which appropriately reflects the considerable embedded value and prospects of our business. We will continue to engage with our shareholders and remain focused on executing our clear strategy that underpins our superior value creation."
Prologis - which specialises in developing data centres in the US - insisted "the standalone case doesn't add up". It said Segro's discount rate applied of 8% "understates both execution risk and the cost of capital in relation to speculative, long-dated, often unzoned and untenanted development projects".
It concluded: "Prologis' proposal provides upfront value, greater flexibility and long-term upside opportunity. Segro's standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding and unjustified valuation."
As at 1015 BST, shares in Segro - which has a portfolio of warehouses and data centres, primarily based in the south east - were largely unchanged at 893.8p.
Under City rules, Prologis has until 22 July to make a firm offer for the real estate investment trust or walk away.
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