FTSE 100 property developer Segro has announced that its board is 'minded to accept' a £14bn takeover bid from US real estate behemoth Prologis. The potential acquisition would see Segro, a prominent player in the logistics and industrial property sector, delist from the London Stock Exchange if the deal proceeds.
The announcement came late on Wednesday evening, just minutes before a crucial deadline for Prologis to either make a firm offer or withdraw its interest. Segro’s board stated it had 'unanimously concluded that the financial terms of the Fourth Proposal are at a level that it would be minded to recommend to Segro shareholders'. This indicates a significant shift from previous reports, where Segro's management had reportedly described earlier offers as 'opportunistic'.
Under the terms of the proposal, Segro shareholders would receive 0.0920 new Prologis shares for each Segro share they hold. This equates to a valuation of £10.54 per share, placing the total value of Segro at approximately £14bn. The deadline for Prologis to submit a binding offer has now been extended to 12 August 2026, allowing further time for due diligence and formalisation of the terms.
This development follows a period of intense speculation and negotiation. The potential departure of Segro would mark another instance of a major UK-listed company being acquired by an overseas entity, raising ongoing questions about the attractiveness and valuation of British firms on the London market. Segro's portfolio includes a vast array of warehouses and data centres, critical infrastructure in today's digital economy, making it a highly desirable asset for a global player like Prologis.
The move underscores the continued appetite for high-quality real estate assets, particularly in the logistics and industrial sectors, which have demonstrated resilience and growth even in challenging economic climates. The proposed takeover highlights the strategic importance of Segro's European and UK property holdings to global logistics operations.