US warehousing firm Prologis has submitted a best and final offer for SEGRO valuing the UK REIT at about £14bn.
SEGRO Park Rainham
The non-negotiable proposal consists of 0.0920 new Prologis shares for each SEGRO share – a 9.5% increase over its initial proposal and a partial cash alternative of up to £3.5bn.
The deal represents a 14% premium to SEGRO’s pro-forma adjusted net asset value as of 30 June 2026.
“There is no doubt a combination of both companies would deliver meaningful value,” said Dan Letter, chief executive of Prologis. “We have listened to feedback from shareholders and we have improved our proposal to make a compelling offer to the SEGRO board.”
SEGRO rejected Prologis’s third takeover bid – valued at £13.5bn – last week. The UK REIT’s board has consistently insisted Prologis bids have been “opportunistic, one-sided and inadequate”. The US firm first made an offer in 2024 and claims shareholders would be 36.5% better off than today, in share price terms, if the bid had been accepted.
Prologis has urged SEGRO shareholders to encourage the board to extend the put-up-or-shut-up deadline, which is currently set for close of play on Wednesday (22 July) and to recommend the takeover.
Norges Bank Investment Management, which holds interest in both Prologis and SEGRO, has put pressure on the UK REIT to come to an agreement. “We believe the proposal merits consideration, and we encourage the boards of both SEGRO and Prologis to enter into constructive discussions to explore whether a transaction can be agreed on mutually beneficial terms for both companies and their shareholders,” the Norwegian sovereign wealth fund said in a statement.
Dutch pension investor APG Asset Management, which also holds interest in both companies, this morning (22 July) joined the chorus of shareholders calling for talks “to explore the strategic and financial merits of a potential combination with the aim of creating long-term value”.
The final bid is the latest in a drawn-out back-and-forth between the businesses. In response to the US warehousing firm urging SEGRO shareholders to force the board into discussions, the UK REIT put out a flurry of announcements on its ability to fulfil the potential of its land bank, including a £2.9bn industrial and logistics joint venture (JV) with PSP and a second, data centre JV with Pure.
In retort, Prologis, which insists it can deliver greater returns for shareholders, said SEGRO was overly reliant on JVs.
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