Prologis has launched a public attack on Segro, accusing the UK-listed property giant of using "unrealistic" and "aspirational" growth projections to justify its rejection of Prologis's $13.5 billion takeover offer. Prologis argued that Segro's internal valuation, which it claims is being used to refuse the bid, is based on an overly optimistic assessment of its future data center and logistics development pipeline. Segro previously rejected a $13.5 billion (£993 pence per share) offer, which included 0.0890 new Prologis shares for each Segro share and a partial cash alternative capped at $2.7 billion, representing approximately 20% of the consideration.
Segro's board believes the offer undervalues its future prospects, particularly regarding its substantial industrial, logistics, and data center development pipeline. The company estimates this pipeline could generate approximately £900 million in potential future rental income and add £4.1 billion in shareholder value. Segro anticipates adjusted EPS to increase from 36 pence in 2025 to 50 pence by 2030, with data centers contributing over 30% of net rental income by 2035, up from 7% today. Its 1.4 GVA data center pipeline alone is projected to yield £460 million in future income, which Segro expects to pre-lease over the next seven years.
Prologis contends that Segro's assessment of value is unrealistic and that its standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding, and an unjustified valuation. Stifel analysts echoed concerns, stating that a sale would have significantly negative implications for the UK-listed real estate investment sector. Segro, however, has indicated it remains open to a higher proposal, even as the July 22 deadline for Prologis to make a firm offer looms. Prologis's proposal represents a premium of 9.7% to Segro's pro forma adjusted NAV of 905 pence per share as of June 30, 2026, and a 33.8% premium to Segro's closing price on June 23, 2026.
