Segro board signals support for Prologis’ $18.8B bid

Segro said its board unanimously concluded it would be "minded to recommend" Prologis's ↘ 2.70% £14 billion ($18.8 billion) "best and final" takeover proposal to shareholders, bringing a month-long pursuit of the British warehouse landlord closer to a deal. Segro shares surged on Thursday to an intraday high of 969p, a 52-week peak, as investors priced in the likelihood of a formal offer.Investing.com+2

The Offer

The revised proposal, submitted on Wednesday, values each Segro share at 1,031.7 pence — a roughly 39% premium to its pre-approach price — comprising 0.0920 new Prologis shares per Segro share plus a partial cash alternative of up to £3.5 billion, representing 25% of the total consideration. Including Segro's 2026 final dividend of up to 22.56p per share, total value to shareholders reaches 1,054.3p. Prologis also committed to establishing a secondary listing on the London Stock Exchange should a formal offer proceed.Investing.com+2

The UK Takeover Panel extended the deadline for Prologis to announce a firm intention to make an offer — or walk away — to 5:00 p.m. London time on August 12, 2026. Segro's board said its recommendation remains subject to satisfactory completion of confirmatory due diligence by Prologis and agreement on all other terms and conditions.Investing.com+2

A Prolonged Pursuit

Prologis first approached Segro with an unsolicited all-share bid of roughly £12.6 billion in mid-June, which the Segro board rejected as inadequate on June 23. The U.S. logistics giant then took the proposal public on June 24, appealing directly to Segro shareholders. Segro formally rejected the approach again on June 29, calling it undervaluing. Prologis returned on July 17 with a revised offer of 0.0890 shares and a £2.7 billion cash alternative, which Segro again turned down on July 19 as failing to reflect its growth prospects.Reuters+4

Wednesday's final offer — a 9.5% increase in the exchange ratio and a larger cash component — proved enough to shift Segro's stance.Investing.com+1

What Comes Next

If completed, the combination would create the world's largest logistics real estate group and represent the biggest takeover of a London-listed company in 2026. Prologis must now complete due diligence and agree final terms before the August 12 deadline. The deal requires approval from Segro shareholders under a scheme of arrangement, a process that typically takes several months to complete.Alpha Spread+1