London, June 24, 2026, 09:30 BST
SEGRO shares jumped 15.6% to about 858 pence in early London trading on Wednesday after Prologis disclosed a rejected £12.6 billion all-share approach. The warehouse landlord was the top FTSE 100 gainer, while the wider index was little changed.
Prologis proposed exchanging 0.084 of its shares for each SEGRO share. Based on Prologis’ Tuesday close of $145.30 and a pound-dollar rate of 1.32, the terms implied 925p per SEGRO share, 24.6% above Tuesday’s 742p close. SEGRO shareholders would own about 10.5% of the combined company. Its board rejected the approach on June 23.
At 858p, SEGRO remained about 7.2% below the stated bid value. Using Prologis’ approximate £12.6 billion valuation, that leaves close to £900 million of proposed equity value unpriced. A simple two-outcome calculation — 742p if talks fail and 925p if the proposal succeeds — prices about 64% of the offered premium. That is a yardstick rather than a forecast.
The main dispute is book value. The 925p proposal equals SEGRO’s last reported EPRA net tangible assets per share, a property-sector measure of net asset value. Before the bid became public, SEGRO traded at a 19.8% discount to that figure. At 858p, the discount is about 7.2%. Bjorn Zietsman, an analyst at Panmure Liberum, said property value was “being underpriced by the stock market” and questioned selling “at book value”. Financial Times
SEGRO can point to earnings and rent growth in support of a higher price. Adjusted earnings per share rose 6.1% in 2025, while the dividend increased at the same rate. The company secured a record £99 million of new annual rent commitments and identified £152 million of potential income from existing leases and vacant space. Its powered land could support 2.5 gigawatts of data-centre capacity, with 1.1 gigawatts available to lease before construction by the end of 2028.
First-quarter trading added £23 million of new annual rent. Projects under construction or in advanced talks represented £73 million of potential rent at a 7.6% development yield — projected annual rent divided by development cost. Occupancy was 94.8%. Chief Executive David Sleath said “structural trends continue to drive occupier demand”, with speculative construction still low across SEGRO’s markets. Segro
Prologis argues that SEGRO cannot fund its full development and data-centre pipeline as easily on its own. It put its net debt at 22% of enterprise value, against 37% for SEGRO, and said its debt-to-cash-earnings ratio was 4.8 times versus SEGRO’s 8.4 times. Prologis also calculated that SEGRO had traded at an average 19% discount to net assets over the past two years.
Fresh debt financing gives SEGRO a partial answer. Its 50-50 European logistics venture with Canada’s PSP Investments priced €650 million of seven-year unsecured bonds on Tuesday at a 4% coupon. The bonds were sold at 118 basis points, or 1.18 percentage points, over euro mid-market swap rates. The venture held €6.8 billion of property at the end of 2025 and generated €367 million of annualised rent. The issue shows access to euro debt, though joint-venture borrowing does not provide the same capacity as cash held by the listed parent.
The approach also lifted peers. Tritax Big Box, SEGRO’s closest listed UK logistics comparison, rose 5.4%, while British Land gained 3.2%. The moves suggest investors see Prologis’ interest as evidence that discounts across listed UK property companies may attract more buyers.
But the spread is not a clean deal probability. Prologis has not made a firm offer, SEGRO’s board has rejected the terms and the value changes with Prologis shares and the dollar-pound exchange rate. Prologis may walk away by July 22 and has reserved the right to offer less in limited circumstances. If talks end, part of SEGRO’s gain over Tuesday’s 742p close could unwind.
The timetable puts pressure on both sides. Prologis’ current deadline falls on July 22, while SEGRO’s half-year results are provisionally due on July 30. Unless the takeover deadline is extended, shareholders will not receive an updated half-year asset valuation before Prologis must bid or leave.
