Prologis said it remained ready to engage with Segro's board over its proposed 12.6 billion-pound ($16.87 billion) takeover approach.
The world's largest owner of industrial real estate said Thursday that talks would enable both companies to explore the full potential of a merger. It urged Segro shareholders to encourage the board to enter into talks.
The company said the proposal was the best way for the London-based real-estate investment trust to maximize long-term value for its shareholders and wider stakeholders.
In June, Segro's board rejected the takeover approach, calling the proposal opportunistically timed and "way short of Segro's own views on value."
Under the terms of the proposal, Segro shareholders would receive 0.084 new Prologis shares for every Segro share they own. Based on the share prices at the time of the proposal, it implies a value of 925 pence for each Segro share.
If the combination were to go ahead, existing Segro shareholders would own about 10.5% of the newly-combined global Prologis platform.
In response, Segro said Thursday that the value of Prologis's current proposal doesn't reflect any basis for further engagement, and urged shareholders not to take any action.
On Wednesday, the British company said it had a very encouraging start to the year, with strong occupier momentum through the first two quarters. The company has a record level of projects in the current and near-term development pipeline, it said.
"[Prologis's] proposal fails to reflect the quality, scarcity and growth embedded in our business," Chairman Andy Harrison said Thursday.
He said the proposal would dilute shareholders' exposure to the company's "unique and irreplicable portfolio and outstanding prospects."
Prologis has until July 22 to either make a formal offer for Segro or walk away under U.K. Takeover Panel rules.
Segro shares were down 0.4% at 861.40 pence in early-afternoon trading in London. However, they are up 20% over the year to date.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
July 09, 2026 07:29 ET (11:29 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.