Segro Shares Surge as Board Signals Support for Revised £14 Billion Prologis Bid

Shares in Segro PLC (SGRO) surged on Tuesday after the logistics property group's board signaled its conditional support for a revised £14 billion takeover proposal from U.S.-based Prologis. The move marks a significant development in the long-running acquisition saga, boosting investor confidence that a deal may be finalized.

Details of the Revised Offer

Prologis announced its "best and final" offer on July 22, 2026, which the Segro board has unanimously agreed it would recommend to shareholders if a formal bid is made. The proposal values each Segro share at 1,031.7 pence.

Key terms of the revised proposal include:

• A 14.0% premium to Segro's pro forma adjusted net asset value of 905p as of June 30, 2026.
• A 39.0% premium to Segro's share price before the offer period began.
• An improved exchange ratio of 0.0920 new Prologis shares for each Segro share, a 9.5% increase from the initial approach.

Key Concessions and Structure

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The revised structure includes terms that likely helped secure the board's backing. The proposal features a partial cash alternative of up to £3.5 billion, or 25% of the total consideration, at the fixed price of 1,031.7p per share. This provides shareholders with greater flexibility.

Prologis has also committed to pursuing a secondary listing of its shares on the London Stock Exchange before the deal's completion. To allow time for due diligence and formal documentation, the "put-up or shut-up" deadline under UK takeover rules has been extended to August 12, 2026.

Market Reaction

Following the announcement, Segro's stock jumped 7.1% to trade at 958.2p, reaching a 52-week intraday high of 969p. The share price movement significantly narrows the gap to the offer price, indicating that the market sees a much higher probability of the deal successfully closing.

While the broader UK market saw gains on Monday driven by positive inflation data, analysts noted that Segro's surge is overwhelmingly driven by the company-specific merger news. The board's first-ever endorsement of an offer from Prologis has sharply reduced uncertainty surrounding the transaction.