SEGRO Rebuffs Sweetened 13.5 Billion Pound Prologis Bid Despite Cash Component

Prologis has submitted a third takeover proposal for SEGRO PLC, the FTSE 100 warehouse landlord, valuing the company at approximately £13.5 billion and introducing a partial cash alternative. The board has rejected the approach, maintaining its position that the offer fails to reflect the company’s intrinsic value and future prospects.

The UK warehouse group issued a statement indicating its willingness to engage further should Prologis submit an improved proposal that appropriately recognises SEGRO’s compelling prospects. The rejection sets the stage for a critical juncture in the takeover saga.

The third proposal, submitted on 16 July and rejected the following day, comprises 0.0890 new Prologis shares for each SEGRO share, representing a 6% increase on the initial terms. The offer now includes a partial cash alternative of up to £2.7 billion, representing 20% of the total consideration, at a fixed price of 1,000 pence per SEGRO share, subject to pro rata scale-back.

Assuming a shareholder elects for the 20% cash option, the proposal values each SEGRO share at 993 pence based on Friday’s closing prices. This represents a premium of 33.8% to SEGRO’s undisturbed share price of 742 pence on 23 June, the day before the offer period commenced, and 9.7% above its pro forma adjusted net asset value of 905 pence.

The disclosure creates a tense final phase, with Prologis facing a deadline of 5pm on Tuesday, 22 July, to either announce a firm intention to make an offer or withdraw under the Takeover Code. The US logistics property giant previously submitted a second proposal on 10 July, which was rejected two days later, and confirmed it would explore a secondary listing of its shares in London if sufficient investor demand materialises.

Prologis has urged SEGRO shareholders to press their board to recommend a deal, whilst mounting a pointed challenge to the defence case SEGRO presented earlier this month. The bidder contends that SEGRO’s 8% discount rate understates the execution risk attached to speculative, long-dated and often un-zoned development projects. The company cited the revocation of data centre entitlements in Paris as evidence of risk in SEGRO’s powered land bank.

Prologis also highlighted that SEGRO’s reported net asset value declined 2.2% in the first half of 2026, questioning why the defence valuation adds a “cluster” premium whilst the company plans to dispose of prime assets into a joint venture at NAV. The bidder reminded shareholders that SEGRO rebuffed an all-share approach at 963 pence in March 2024, arguing they could be 36.5% better off today had that transaction proceeded.

SEGRO has dismissed the pursuit as inadequate, opportunistic and one-sided, with chairman Andy Harrison accusing Prologis of attempting to acquire the company at a discounted valuation whilst its share price was dislocated by the Middle East conflict.