FTSE 100 listed UK property group Segro has rejected a third takeover offer from a US firm ahead of a deadline for submitting a concrete bid.
Segro, which slammed Prologis over its initial £12.6 billion all-share approach last month, turned down a second offer earlier this month then a third approach valued at £13.5bn – and sweetened with a £2.7bn cash element.
Segro owns a portfolio of warehouses and data centres – mainly in the South East of England – and has benefited from the growth of online shopping.
After the first approach was rejected, Prologis set out its rationale for a deal, pointing to “a substantial upfront premium from joining the new, stronger entity and the world’s leading logistics real estate platform” and “track record of delivering substantial total shareholder returns”.
It added: “Over the past five years, total shareholder returns have equaled 38.6% for Prologis, compared with a 20.1% decline for Segro.
“Prologis’ access to public and private capital will enable Prologis to unlock and accelerate the embedded value of Segro’s development and data centre pipeline which Prologis believes Segro is unable to fully realise on a standalone basis given its balance sheet capacity and persistent trading discount.”
Prologis has a long-standing presence in the UK and Europe, which has grown to £27.8bn of Assets Under Management since 1997.
However the board of Segro said it “sees a significant value creation opportunity through delivering its current growth strategy which the proposal wholly fails to recognise”.
Based on Prologis’ closing share price on 17th July 2026 – and assuming a shareholder elects for the 20% cash option – the third proposal values each Segro share at 993 pence, representing a premium of 33.8% to the closing price of 742p on 23rd June – the day prior to the commencement of the offer period.
Prologis said that if a deal was reached, it intends to explore the feasibility of a secondary listing of Prologis shares on the London Stock Exchange.
It said that Segro’s assessment of value is “unrealistic” and that its “own actions contradict its valuation claims… Segro’s defence valuation adds a ‘cluster’ premium, despite planning to dispose of prime assets, including significant development land, into the proposed PSP joint venture at NAV”.
Prologis has until 5pm tomorrow (Tuesday 22nd July) to either announce a firm intention to make an offer or walk away under the takeover code.