UK real estate investment trust (REIT) Segro has rejected a third revised £13.5bn (€16bn) takeover bid from Prologis, but said that it would be willing to engage further should Prologis submit an improved offer that “appropriately reflects” its value.
Last month, NYSE-listed Prologis called on Segro shareholders to encourage their board to engage in discussions regarding a takeover bid, following the rejection of an initial £12.6bn offer.
The proposed deal at the time would have given shareholders of London-listed Segro a 10.5% stake in the combined group that would form the world’s largest logistics REIT, with a $140.9bn (€123.5bn) market capitalisation.
In its latest update, Prologis said it has made a third proposal consisting of 0.0890 new Prologis shares for each Segro share, which marks a 6% increase over its initial offer. The proposal also includes a partial cash alternative of up to £2.7bn, representing 20% of the total consideration.
This total offer represents a 33.8% premium to Segro’s closing share price of 742p on 23 June 2026, the day before the offer period commenced.
Prologis added that it intends to explore the feasibility of a secondary listing of its shares on the London Stock Exchange, subject to sufficient investor demand.
Segro, which has rejected the revised offer, said that it would be willing to engage further should Prologis submit an improved proposal that appropriately reflects the value of the business.
Andy Harrison, chairman of Segro, said: “The Board does not believe that Prologis’s latest proposal to acquire Segro reflects the quality, scarcity or long-term prospects of Segro’s portfolio and platform and has been rejected unanimously by the board.
“The board is seeking to maximise value for shareholders and would further engage on any proposal which appropriately reflects the considerable embedded value and prospects of our business. We will continue to engage with our shareholders and remain focused on executing our clear strategy that underpins superior value creation.”
To read the latest IPE Real Assets magazine click here.
