Segro defends standalone growth as Prologis pursues £12.6bn takeover

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Segro defends against Prologis takeover

Highlights

Segro rejects Prologis's £12.6bn all-share takeover bid, arguing it undervalues the company and proposing standalone earnings per share to reach 50p by 2030.
Segro cites a £13 per share valuation from CBRE versus the 925p per share implied by Prologis’s bid and highlights expected growth in data centre rental income from 7% today to 30% by 2035.
Prologis has until July 22 under UK rules to make a firm offer, with the proposed deal poised to be the largest UK takeover in 2024 if concluded.

Growth case and valuation defence

As reported by Financial Times, Segro tells investors that Prologis's all-share proposal materially undervalues the company and transfers too much future upside to the bidder. The group rejected the approach on June 23 and on Wednesday set out a fresh case for shareholders, including guidance for earnings per share to reach 50p by 2030 from 36.6p today.

Segro also points to a valuation of about £13 a share from commercial property investment firm CBRE, seeking to demonstrate that its future value stands above the 925p a share implied by Prologis's bid. Chief executive David Sleath says a transaction at the current price would shift substantial value from Segro shareholders to Prologis and does not reflect the company's intrinsic worth.

The company reports net asset value of £9.05 a share, down from £9.25 in December 2025, but argues that this measure does not capture the value it expects to generate from its logistics and data centre pipeline. A top 10 shareholder also says Prologis would look like a "highway robber" if it secured Segro at the proposed price.

Data centre strategy and takeover implications

Segro says data centre net rental income is expected to rise to 30 per cent by 2035 from 7 per cent today, underlining why the company believes its standalone prospects are stronger than the bid suggests. It also announces a joint venture to develop a data centre in Paris, adding to its argument that the business has multiple growth avenues beyond its warehouse portfolio.

Prologis says unlocking the full potential of Segro's assets requires the capital, data centre expertise, customer relationships and platform capabilities it can provide at scale. The U.S. group has previously expanded through major acquisitions, including the $23bn purchase of Duke Realty in 2022 and the $12.6bn takeover of Liberty Property Trust in 2019.

If Prologis succeeds, the deal would become the largest UK takeover this year and add to a broader wave of foreign bids for London-listed companies. Under UK takeover regulations, Prologis has until July 22 to make a firm offer or walk away, while Sleath says Segro would consider a more attractive proposal if one emerges.

In our earlier coverage of the DAX Index’s pullback, we noted that the benchmark slipped after a strong run as ambitious valuations collided with sluggish aggregate earnings and dividend growth. The analysis highlighted mixed technical signals—bullish alignment above key moving averages, but overbought readings and volatility pointing to elevated correction risk and potential range trading around major support and resistance levels.

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