Segro's shares surged after the world's largest logistics real estate investment trust, Prologis, publicly disclosed an indicative all-share takeover proposal that had previously been presented to Segro's board and rejected.
Prologis said it sent a letter to Segro's board on June 16, 2026, outlining terms for an indicative proposal valuing Segro at £12.6 billion. Segro's board, Prologis added, rejected that private approach on June 23. By making the bid public, Prologis directly appealed to Segro shareholders to press the board to engage with Prologis so a binding offer could be put to shareholders.
Under the terms disclosed, Segro shareholders would receive 0.084 new Prologis shares for each Segro share held. Prologis calculated that the exchange would imply a price of 925p per Segro share - a 24.6% premium to Segro's prior-day closing price of 742p - and equal to Segro's last reported EPRA net tangible assets per share at the end of 2025.
Prologis argued that Segro has traded at a sustained discount to net asset value and faces constraints, including balance sheet limits, that restrict its ability to unlock value in the company’s development and artificial intelligence data centre pipeline. The bidder noted that Segro traded, on average, at discounts to net tangible assets of 19% and 17% over the past two and three years respectively, and said its global platform and stronger balance sheet could unlock the embedded value in Segro's pipeline.
The public disclosure triggers a procedural timetable under the UK Takeover Code. Prologis must, by no later than 5:00 pm London time on July 22, 2026, either announce a firm intention to make an offer or discontinue the approach.
Market reaction was immediate. Segro stock advanced around 15.0% on the day following the public appeal, briefly touching a session high of 892.2p - a fresh 52-week peak - before settling at 853.4p. The share move came despite a broader UK market that provided no tailwind; the FTSE 100 was down 0.2% for the day as European equities remained subdued after a sharp technology-led selloff the prior session and amid hawkish signals from the US Federal Reserve that weighed on sentiment.
Analysts who commented on the proposal described the offer as compelling in light of Segro’s weak returns since 2022, when significant yield expansion followed the interest rate spike that year. They observed that Segro’s longer-term fundamentals - including a latent data centre development pipeline - appear intact, which places pressure on Segro’s board to present a convincing standalone growth strategy to shareholders if it wishes to resist or counter the proposal.
The bid and the board’s prior private rejection have concentrated attention on the next steps: whether Segro’s board will reopen discussions, whether shareholders will push for engagement, and whether Prologis will either proceed to a firm offer or withdraw by the July 22 UK Takeover Code deadline.
Summary
Prologis has taken an indicative all-share bid for Segro public after a private rejection by Segro’s board. The proposal would exchange 0.084 Prologis shares per Segro share, implying 925p and a 24.6% premium to the previous close. Segro shares spiked, reaching a 52-week high intra-session, as markets weigh the strategic arguments offered by Prologis and await a formal response ahead of the July 22 deadline.