Segro (LSE:SGRO), the pan-European industrial and logistics real estate investment trust, has publicly rejected a possible offer from Prologis, the US-listed warehouse and logistics property giant, describing the proposal as inadequate.
The board said the approach fails to capture the value embedded in Segro's logistics and data centre development pipeline, the scarcity of its urban-weighted European portfolio, or the quality of its operating platform.
Critically, Segro argued the proposal makes no allowance for a change of control premium, and that its net tangible asset value alone understates the company's fundamental worth given the long-dated income streams its development pipeline is expected to generate.
The board characterised the portfolio as "unique and irreplicable," pointing to decades of deliberate positioning in supply-constrained cities across Europe's largest markets.
Under the City Code, Prologis must by 5.00pm on 22 July either announce a firm intention to make an offer or walk away.
