The board of UK-based Segro has definitively turned down the acquisition proposal, according to a statement from the US industrial real estate giant.

Prologis (NYSE: PLD), the world's largest industrial property owner, has publicly disclosed that its all-share takeover offer for British peer Segro, valued at £12.6 billion (approximately $16.63 billion), has been rejected.

The US company stated on Wednesday that under the terms of the proposal, Segro shareholders would receive 0.084 new Prologis shares for each Segro share held. This equates to an offer price of 925 pence per Segro share, representing a 25% premium to Segro's closing share price on Tuesday.

Prologis confirmed that Segro's board of directors has firmly rejected the unsolicited offer.

Prologis argued that a combination of the two companies holds clear strategic merit and urged Segro's shareholders to encourage their board to engage in discussions to properly evaluate the proposal.

Segro has not yet responded to media requests for comment on the matter.