UK property group Segro has rejected a $15.5 billion (approximately £12.6 billion) all-share takeover bid from its US rival Prologis, stating the offer significantly undervalues its future growth. The London-listed owner of warehouses and data centers rebuffed Prologis's offer, which valued Segro at 925 pence per share, on June 23. Segro plans to present a detailed defense to its shareholders, aiming to convince them that its independent strategy will deliver greater long-term value.
Segro has outlined its case to shareholders, projecting earnings per share of 50 pence by 2030, up from 36.6 pence currently. The company's net asset value per share recently fell to 905 pence from 925 pence, but Segro asserts this metric does not capture the future value from its substantial logistics and data center development pipeline. Commercial property firm CBRE has provided a valuation of approximately 1,300 pence per share for Segro, further emphasizing the perceived undervaluation.
Prologis's bid included an approximately 25% premium on Segro's closing share price at the time of the offer. However, Segro's chairman, Andy Harrison, stated that the current proposal does not provide a basis for further engagement, calling it "opportunistic, one-sided, and inadequate." Prologis, which has a market value of around $141 billion and a history of large acquisitions, including Duke Realty for $23 billion, believes its capital and expertise can unlock Segro's full potential. The US real estate giant has until July 22 to make a firm offer or withdraw, under UK takeover rules.
Segro highlighted its strong operational momentum, securing $67.5 million (£53 million) in new headline rent during the first half of 2026, a significant increase from $39.5 million (£31 million) in the same period last year. The company also announced a second joint venture with Pure Data Centres Group for a 48MW data center in Paris, demonstrating its commitment to expanding its data center portfolio. Data center net rental income is expected to increase from 7% to 30% by 2035. Analysts at Stifel suggested that a 1,110 pence per share offer might be agreeable but warned against Segro's management being capable of realizing its portfolio's inherent value independently.
