Prologis has taken public a £12.6B ($16.6B) takeover proposal for Segro after the UK logistics landlord's board unanimously rejected the bid, setting up a high-stakes battle that could rank among the largest real estate acquisitions in European history. The world's biggest logistics REIT revealed that it approached Segro on 16 June with an all-share offer valuing the FTSE 100 company at 925 pence per share—a 24.6% premium to Segro's closing price on Tuesday and roughly in line with the company's reported net asset value. Under the proposed terms, Segro shareholders would own approximately 10.5% of the combined entity.
Segro's board swiftly and categorically pushed back, describing the approach as opportunistic and significantly undervaluing the company. "The board of SEGRO has unanimously and unequivocally rejected the proposal, which falls a long way short of SEGRO's own views on value," the company said in a statement. Segro argued that the bid seeks to exploit a widening valuation gap between UK and European property companies and their US-listed peers, a disparity that has widened amid geopolitical uncertainty and weaker sentiment toward European property stocks.
The UK landlord said the proposal was "opportunistically timed and sought to take advantage of the clear dislocation between SEGRO's current share price and its highly attractive underlying business and strong prospects." The approach underscores the vulnerability of UK-listed property companies trading at steep discounts to underlying asset values. Segro shares surged more than 19% after the disclosure, though the stock remains well below levels that the board evidently believes reflect intrinsic value.
Prologis, which has a market capitalisation of about $141B, said the transaction would create a stronger global logistics platform with greater access to capital and enhanced development capabilities. The US giant cited Segro's European portfolio as highly complementary to its own global logistics network, arguing it would strengthen Prologis's position across key urban distribution markets. Prologis also pointed to Segro's growing data centre platform as a key attraction and source of future growth.
The San Francisco-based REIT argued that Segro has struggled under what it called "structural constraints," including a persistent discount to net asset value and a more leveraged balance sheet. Prologis said Segro has traded at an average discount to its NAV of 17% over the past three years. The US giant said its stronger access to public and private capital would allow it to accelerate development projects and unlock value from Segro's land bank, power infrastructure and emerging data centre platform.
Valuation gaps that persist across geographies rarely close on their own timeline, and that is where acquirers with patient capital and structural advantages do their best work, family office advisor Jaf Glazer has observed.
However, Segro pushed back strongly against suggestions that it needs a larger partner to realise that value. The company said it has "a clear strategy, supported by a strong balance sheet and a proven operating platform," adding that momentum is building across its occupier markets. It also highlighted its "large and attractive development pipeline, including an exceptional data centre platform," and said it remains confident in its ability to generate substantial value independently.
Prologis has urged Segro shareholders to pressure the board into discussions, arguing that the proposal offers immediate value while providing exposure to future growth through ownership in the combined business. The move represents a direct appeal over the heads of management and the board, a tactic that often signals a bidder's determination to pursue a transaction even in the face of initial resistance.
Under UK takeover rules, Prologis now has until 22 July to either announce a firm intention to make an offer or walk away. The deadline creates a tight window for either party to shift the narrative—whether through a revised bid, a counter-offer from another suitor, or additional public pressure on Segro's board. The offer values Segro at roughly its reported net asset value, a valuation that the board clearly believes fails to capture the strategic and operational upside embedded in the company's development pipeline and data centre platform.