Segro Shares Rise After Board Yields to Prologis's Final $18.7 Billion Takeover Bid

By Anthony O. Goriainoff

Shares in Segro hit a near four-year high after the company succumbed to U.S. warehouse giant Prologis's latest 14 billion pounds ($18.72 billion) offer proposal, having rejected three previous attempts.

London-listed shares were up 7.1% at 958.60 pence in early trading Thursday, a level not seen since September 2022. They are currently up 33% over the year to date.

Segro said late Wednesday that it would recommend Prologis's latest proposal to shareholders if a formal offer were to be made. It also agreed to extend the deadline for Prologis to make a firm offer until Aug. 12.

Late on Wednesday, Prologis increased its offer to buy the U.K. industrial landlord to 14 billion pounds and said this was its final proposal. The company also offered a partial cash alternative of up to 3.5 billion pounds as part of the deal.

The American company said it was offering 0.092 new shares for each Segro share tendered. The latest offer valued the U.K. company at 10.32 pounds a share, or 3.9% more than its previous proposal and 9.5% above the initial approach.

Accepting shareholders will also be able to receive Segro's interim dividend of 10.14 pence a share.

"The board of Segro has unanimously concluded that the financial terms of the fourth proposal are at a level that it would be minded to recommend to Segro shareholders," the company said.

Earlier, Prologis said it decided to improve its bid after listening to feedback from shareholders. It added that it saw the revised proposal as a compelling offer to the Segro board.

If a deal is agreed on, Segro would be the latest company to be taken over by a U.S. company, dealing a blow to the London Stock Exchange.

Budget airline easyJet agreed in principle to a potential $7.6 billion takeover proposal by U.S. asset manager Apollo, while DCC Energy has said it would recommend an up to $7.85 billion takeover proposal from a KKR consortium.

Outsourcing company Mitie also said earlier this week it agreed to a $4.16 billion takeover by OCS, and Tate & Lyle recently agreed to be taken over by food-and-drink ingredients maker Ingredion.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

July 23, 2026 05:25 ET (09:25 GMT)