Segro PLC (LSE:SGRO) shares surged 15.5% to 857p after US logistics giant Prologis Inc (NYSE:PLD) went public with a rejected £12.6 billion all-share takeover proposal.
Prologis revealed it wrote to Segro’s board on 16 June with an indicative offer under which Segro shareholders would receive 0.084 new Prologis shares for each Segro share held.
Segro’s board rejected the proposal on Tuesday, 23 June, prompting the American company to make its approach public.
Based on Prologis’ closing share price on that day and prevailing exchange rates, the proposal values Segro at 925p per share.
That figure represents a 24.6% premium to Segro’s closing price of 742p and matches the group’s last reported EPRA net tangible assets per share at the end of 2025.
Under the proposed terms, Segro shareholders would own approximately 10.5% of the enlarged combined group if the deal were completed.
Prologis, the world’s largest logistics real estate investment trust with a $139 billion market cap and over 1.2 billion square feet across 19 countries, argued the deal would give Segro investors access to a larger global platform and greater financial resources.
The San Francisco-based company said Segro’s growth has been constrained by its balance sheet and highlighted that its shares have “traded at a persistent discount” to the value of its underlying assets.
Prologis also argued its financial firepower could unlock “significant embedded value of Segro’s development and data centre pipeline in a way that Segro will not be able to do on a standalone basis.”
The US group has until 22 July to make a formal offer and has urged Segro shareholders to press the board to enter into talks.
The announcement sent shockwaves across the wider UK real estate sector, lifting share prices for a broad range of listed property companies on both the FTSE 100 and FTSE 250.
Tritax Big Box REIT PLC (LSE:BBOX) climbed 5.4%, while British Land Company PLC (LSE:BLND) rose 3.2% and Land Securities Group PLC (LSE:LAND) gained 3%.
LondonMetric Property PLC (LSE:LMP) advanced 2.8%, with FTSE 250 names also catching a bid as sentiment shifted across the sector.
On the FTSE 250, Big Yellow Group PLC (LSE:BYG) rose 4%, Great Portland Estates (LSE:GPOR) climbed 3.75%, Hammerson PLC (LSE:HMSO) gained 3.3% and Shaftesbury Capital PLC (LSE:SHB) added 3%.
Broker Stifel warned of broader structural implications, stating: “Segro’s current market cap of £10bn represents just under 20% of the entire EPRA UK REIT Index. If Segro were to be taken over, it would represent a serious challenge to the long-term viability of the UK Listed property sector.”