Prologis has lodged a third proposal for Segro (LSE:SGRO), adding a partial cash alternative after its second approach was rejected on 12 July.
Segro, the UK-listed owner of warehouses and industrial property, turned down the latest offer, valued at 993p per share for shareholders electing 20% cash, on 17 July.
Prologis argues Segro's standalone plan depends on flawless execution of a long-dated development pipeline and unrealistic valuation assumptions, including an 8% discount rate it says understates execution risk on speculative, un-zoned land.
It also points to a revoked data centre entitlement in Paris as evidence that Segro's powered land bank carries risks not reflected in its own valuation, and notes Segro's net asset value fell 2.2% in the first half.
Prologis says Segro's plan to place prime assets, including development land, into a proposed joint venture with PSP at net asset value sits awkwardly with the "cluster" premium Segro claims for the same portfolio.
"Prologis' proposal provides upfront value, greater flexibility and long-term upside opportunity," the group said, contrasting this with what it calls Segro's reliance on third-party funding and an unjustified valuation.
Segro rejected Prologis' original March 2024 approach as "opportunistic", saying at the time it saw "no merit in the proposed combination."
Under Takeover Panel rules, Prologis must by 5pm on 22 July either announce a firm intention to bid under Rule 2.7 or walk away, a deadline extendable only with Panel consent.
News Intelligence what this means for the company
Prologis has tabled a third unsolicited bid for Segro at 993p per share (with a 20% cash option), which Segro rejected on 17 July. The bidder is now attacking Segro's standalone valuation—specifically an 8% discount rate it calls unrealistic and a Paris data-centre entitlement revocation it cites as evidence of execution risk—while Segro counters that Prologis's offer undervalues the company. Prologis faces a hard deadline of 5pm on 22 July to announce a firm intention to bid or walk away under Takeover Panel rules, making the next 48 hours decisive.
The bid escalation and valuation dispute hinge on how much weight to place on Segro's development pipeline and powered-land execution risk. Segro secured £53m of headline rent in H1 2026, a 71% year-on-year increase, and reported a record development pipeline, but Prologis's challenge to the discount-rate assumption and the Paris setback suggest material uncertainty around the standalone plan's returns. The outcome by 22 July will clarify whether Prologis commits to a formal offer or exits, reshaping Segro's strategic options.
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