Segro Rejects £13.5 Billion Prologis Takeover Bid

Segro Plc announced on November 14, 2023, that it has rejected a revised takeover proposal from Prologis Inc. The offer, valued at approximately £13.5 billion, consisted of cash and Prologis shares. Segro's board unanimously determined that the proposal significantly undervalues the company and its future prospects.

This marks the second time Segro has rebuffed an offer from Prologis. The initial unsolicited proposal was made in early October 2023. Segro stated that its independent directors believe the latest offer does not reflect the intrinsic value of the business, its strong market position, and its growth potential in the logistics and industrial property sector. The company highlighted its robust development pipeline and its ability to generate sustainable long-term value for shareholders.

Prologis, a major global player in logistics real estate, had been seeking to acquire Segro to expand its European footprint. Segro, a leading owner, manager, and developer of modern industrial and urban warehousing properties in the UK and Europe, has seen increased demand for its assets driven by e-commerce growth and supply chain reconfiguration. The company's portfolio includes prime locations and a strong development pipeline, which Prologis aimed to integrate into its own operations.

Segro's rejection underscores its confidence in its standalone strategy and its belief that it can achieve greater value for its shareholders by continuing to execute its current business plan. The company has advised its shareholders to take no action regarding the Prologis proposal. The announcement sent Segro's share price up by 3.5% in early trading on November 14, 2023, reflecting investor sentiment that the company is right to hold out for a better offer.