Segro has rejected a £12.6bn takeover proposal from US logistics property giant Prologis, dismissing the all-share approach as opportunistic and undervaluing the business.

Prologis revealed it submitted an indicative proposal on 16 June to acquire the entire issued and to be issued share capital of the FTSE 100 warehouse and industrial property group, which is Europe’s largest warehouse landlord.

Under the terms, Segro shareholders would receive Prologis shares equivalent to £9.25 per Segro share, valuing the company at around £12.6bn.

The offer represented a 24.6% premium to the UK-based real estate investment trust's closing share price on 23 June and would leave its investors owning around 10.5% of the enlarged group.

Prologis said the combination would create a stronger global logistics platform and argued its larger balance sheet and access to capital could unlock greater value from Segro's development and data centre pipeline. The US group also mentioned potential operational synergies as rationale for the deal.

However, Segro's board rejected the proposal outright, saying it “falls a long way short of our view of the company’s long-term value” and calling the approach “opportunistically timed”, arguing that the proposal failed to reflect the strength of its portfolio, development pipeline and future growth opportunities.

It is believed that Segro's data centre pipeline is one of the key factors underpinning its valuation and a likely driver behind Prologis’s takeover interest.

According to the company's March trading update, it is progressing a data centre development opportunity with more than 2.5GW of powered land capacity across its estates, making it one of Europe’s largest powered land banks. Segro has also secured a new pre-let agreement to develop a 30,000 sq m powered-shell data centre at Slough Trading Estate, Europe’s largest data centre cluster.

The project is viewed as strategically important because it provides potential for future rental growth and value creation beyond its traditional logistics and warehouse portfolio.

Investors responded positively to the disclosure, with Segro shares rising between 18% and 20% on 24 June to trade around £0.875–£0.892 per share, close to the implied offer value.

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