20th Jul 2026 22:54
(Alliance News) - Segro PLC late Monday "reiterated" the opportunity presented by its own growth strategy compared to the proposed takeover by Prologis Inc.
Earlier Monday, Prologis publicly made the case to Segro shareholders after the London-based logistics property company rejected Prologis' third takeover offer.
Segro's San Francisco-based peer is offering 0.0890 of a new Prologis share for each Segro share, which values Segro at 993 pence per share or GBP13.5 billion in total.
The offer price is a 9.7% premium to Segro's adjusted net asset value of 905 pence per share at June 30. The new offer also includes a partial cash alternative of 1,000 pence per Segro share, capped at GBP2.7 billion.
Prologis on Monday said: "Segro's standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding and an unjustified valuation."
Segro confirmed that it received and unanimously rejected the latest Prologis offer. However, it met with Prologis management on Sunday "to understand Prologis' ability to improve its financial terms to a level that could be capable of being recommended by the board of Segro".
Later Monday, Segro said it looked forward to "further engaging with investors in the coming days". It pointed shareholders to a new presentation which reiterated its "compelling income and value creation opportunity."
Segro highlighted its "unique and irreplicable portfolio" focused on Europe's most supply-constrained markets; "momentum" in occupier markets, a "strategically positioned" European data centre platform, and "substantial" rental income, earnings and capital growth "from capturing embedded reversion and development upside".
"The board of Segro is clear that there is substantial embedded value in the business and Segro has a clear strategy and the tools to deliver that on a standalone basis. The question is not whether Segro can execute this strategy, but whether Segro shareholders retain the value created through that execution.
"Prologis's proposal to takeover Segro will not accelerate Segro's execution on its growth strategy, it will simply transfer 100% of this upside to Prologis in return for a diluted [around 9%] interest in the enlarged company. In the context of a takeover, Segro shareholders should be appropriately compensated for transferring this value to Prologis. Prologis's further revised proposal fails to deliver this. The board remains focused on maximising shareholder value and will carefully consider any further proposals which appropriately reflect the embedded value of the business," it added.
Segro shares closed up 0.3% at 900.20 pence each on Monday in London. They are up 35% over the past 12 months.
By Aidan Lane, Alliance News reporter
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