Segro has stated that Prologis’ investor presentation on a possible merger between the two firms "fails to reflect the quality, scarcity and growth" embedded in the business.

Prologis had provided this presentation to help Segro shareholders "further assess the significant potential benefits" of a combination of the two firms.

The logistics real estate firm said it believes that constructive engagement "remains the best path" for the Segro board to maximise long-term value for its shareholders, adding that the combination creates a "credible path to value creation".

As a result, the logistics real estate firm has urged Segro shareholders to “encourage” the board to engage with discussions to allow a binding offer to be put to them for consideration.

However, Segro has stated in response to the presentation that the proposal is "inadequate" and "opportunistic", adding that it has demonstrated its standalone growth strategy in its H1 trading update published yesterday.

Segro has therefore called on its shareholders to take no action in relation to Prologis’ proposal.

Chairman at Segro, Andy Harrison, stated: "The Board takes its fiduciary duties very seriously, but the value of Prologis's current, rejected proposal does not reflect any basis for further engagement.

“Prologis's latest announcement and presentation are consistent with its attempt to buy Segro on the cheap.

“Its proposal fails to reflect the quality, scarcity and growth embedded in our business and is an inadequate, opportunistic and one-sided alternative that would dilute our shareholders' exposure to our unique and irreplicable portfolio and outstanding prospects."

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