Prologis Pitches All-Share Merger to SEGRO Shareholders

The presentation outlines a strategy to leverage Prologis’ global capital access to unlock the full potential of SEGRO’s development and data center pipeline. Prologis argues that SEGRO’s current standalone valuation is hampered by balance sheet constraints and a persistent trading discount. To bolster its case, the company highlighted a significant performance gap, noting that its own total shareholder returns reached 38.6% over the last five years, while SEGRO saw a 20.1% decline during the same period.

Beyond financial metrics, the proposal emphasizes a track record of successful large-scale integrations, citing past acquisitions of DCT Industrial, Liberty Property Trust, and Duke Realty. Prologis claims these mergers delivered substantial returns for shareholders post-integration. The company also pointed to its long-standing UK footprint, noting £27.8 billion in assets under management since 1997 and a commitment of £5.5 billion in recent UK investments. While the presentation sets the stage for a potential deal, Prologis clarified that this is not a firm intention to make an offer under the UK City Code on Takeovers and Mergers, and there is no certainty that a formal bid will materialize.