SEGRO draws a hard line as board rejects Prologis’ latest proposal

SEGRO’s board has rejected Prologis’ Further Revised Proposal, arguing the takeover would transfer all future upside to Prologis while leaving SEGRO shareholders with only a diluted c.9% interest in the enlarged group.

SEGRO

SEGRO published its investor presentation outlining embedded value and growth prospects with the company stating it has a “compelling income and value creation opportunity,” underpinned by a unique pan‑European portfolio, record £90m current and near‑term development pipeline, and a strategically positioned 3.0GVA data centre power bank.

SEGRO argues Prologis’ offer, valuing shares at 993p assuming full cash election reflects a temporary share price dislocation following geopolitical events.

The company highlights substantial embedded reversion, accelerating EPS growth to c.50p by 2030, and expected double‑digit Total Accounting Returns over the medium term.

The SEGRO Board stated “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 presentation concluded by stating that the SEGRO Board will “carefully consider any further proposals which appropriately reflect the embedded value of the business.”