PLD/SEGRO: Final Offer and Next Steps

Research evidence excerpt

PLD/SEGRO: Final Offer and Next Steps

July 22, 2026

Investment Conclusion

●What happened: This morning, PLD announced their "best and final" proposal to the Board of SEGRO. The best

and final proposal is final and will not be increased, unless a competing bid comes in or the Takeover Panel

provides consent. This proposal consists of 0.0920 new PLD shares for each SEGRO share and a partial cash

alternative of up to £3.5 billion. Based on PLD's closing share price of $149.94 and the GBP:USD exchange rate

of 1.3371, the best and final proposal values each SEGRO share at 1,031.7 pence.

●Implications. We highlight estimated accretion assuming 100% stock election in Exhibit 1 below assuming

differing levels of G&A synergy. Notably, we estimate the transaction to be roughly earnings neutral to dilutive

initially absent GAAP mark to markets (see Exhibit 1-calculations available upon request and let us know if

a walk through would help)-we estimate mark to markets would modestly improve accretion. This entry point

has made sense to us given (1) potential value in data centers and (2) PLD’s success in rolling out a data center

business thus far (recently, upside in our model has been from adding higher yielding data center development

projects rather than from industrial market performance).

●What happens from here. This gets exciting! Here is our understanding of next steps:

○Prologis would need to go firm on a bid (Rule 2.7) versus its current proposal (Rule 2.4) by 5:00 PM

London time (12:00 PM New York Time).

○SEGRO (not Prologis) could request an extension to consider the offer, and has been encouraged by a

major shareholder (Norges) to engage with Prologis (see here).

●Historically, any weakness related to PLD pursuing a merger tends to be a buying opportunity.