Prologis Unveils New Proposal with Partial Cash Alternative to SEGRO Shareholders

Prologis Unveils New Proposal for SEGRO

Prologis, Inc., a leading real estate investment trust, has recently made waves in the investment community with its third acquisition proposal directed at SEGRO plc. This strategic move, announced on July 20, 2026, follows two previous proposals which were rejected by SEGRO's board. Prologis believes this latest offer presents an excellent opportunity for SEGRO shareholders and is urging them to persuade their board to acknowledge the potential of this combination.

Details of the Third Proposal

The centerpiece of Prologis's Third Proposal includes the offer of 0.0890 new shares in Prologis for each SEGRO share held, which marks a 6% increase compared to its initial proposal. In addition, the proposal features a Partial Cash Alternative that allows shareholders to receive cash up to £2.7 billion, constituting about 20% of the total consideration at a fixed price of 1,000 pence per SEGRO share. This cash option offers shareholders significant flexibility and upfront value, aiming to bolster their involvement in the decision-making process.

From Prologis’s outlook based on its closing stock price at $149.79 as of July 17, 2026, this current proposal values each SEGRO share at 993 pence. This valuation stands out with a premium of nearly 9.7% compared to SEGRO's adjusted NAV as of June 30, 2026, and a substantial 33.8% over its closing price of 742 pence a day prior to the commencement of the offer period.

The Rationale Behind Prologis' Offer

Prologis is positioning this proposal not just as an acquisition but as a step that could significantly enhance shareholder value. They have paired this proposal with a compelling investor presentation, aimed at helping shareholders make a well-informed assessment of the offer. Prologis’s strong performance reports showcase a year-on-year same-store net operating income growth of 8.5%, coupled with an 11.6% year-on-year growth in Core FFO per share, illustrating the firm’s ongoing growth strategy and operational prowess.

Additionally, Prologis points to challenges faced by SEGRO, where it argues that SEGRO's current valuation methodologies and assumptions do not adequately reflect the inherent risks tied to their long-term development projects.

A Strategic Opportunity for Shareholders

Prologis emphasizes that engaging in a merger with them would allow SEGRO shareholders to benefit from increased stability and enhanced long-term growth potential. Their case also highlights the risks associated with SEGRO's standalone operations, particularly in realizing shareholder value without the backing of a more robust portfolio offered through a combination with Prologis.

In the past, Prologis noted that SEGRO shareholders missed out on potential direct benefits when SEGRO previously rejected Prologis’s March 2024 proposal, which, had it been accepted, could have represented a 36.5% increase in share value.

Conclusion: A Call to Action

Prologis advocates for SEGRO shareholders to actively communicate their interest in the proposal to their board. As part of their ongoing commitment to interested parties, Prologis has made this proposal publicly available and accessible for interested shareholders wishing to discern its potential merits. The launch of the Partial Cash Alternative could signify a turning point for SEGRO’s shareholders, and the decision lies now in their hands.

With the clock ticking towards the deadline for Prologis to announce its firm intention regarding the acquisition, SIGRO's shareholders are encouraged to assess the scenario critically and understand these substantial options ahead.