Bid to acquire Hammerson ‘inadequate and entirely opportunistic’
Shopping centre owner Hammerson has said the approach by French real estate firm Klépierre was “unsolicited and entirely opportunistic in its timing.”
The proposal, received on 8 March 2018, valued Hammerson at a price of 615 pence per share, comprising 50% in new Klépierre shares and 50% in cash.
Hammerson, which owns Victoria Gate in Leeds and is undergoing a merger with its major competitor Intu, said the approach by Klépierre was unsolicited and entirely opportunistic in its timing.
The firm said: “The Board of Hammerson has unanimously rejected the Proposal on the grounds that it very significantly undervalues Hammerson, its track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation.”
Hammerson said it remained fully committed to the acquisition of Intu announced on 6 December 2017 , which the Board continues to believe will deliver significant value for Hammerson shareholders.
David Tyler, chairman of Hammerson, said: “The proposal from Klépierre is wholly inadequate and entirely opportunistic. It is a calculated attempt to exploit the disconnect between our recent share price performance and the inherent value of our unique and irreplaceable portfolio which is delivering record results.
“Klépierre is asking our shareholders to accept a price for their Hammerson shares which is not only at a significant discount to their book value but includes a large element of paper in a company which in our view has a lower quality portfolio and lower growth prospects. The Hammerson Board sees absolutely no merit in Klépierre’s Proposal and has unanimously rejected it. The Board strongly advises shareholders to take no action.”
The firm added that the Intu acquisition enhanced strategic growth, delivering further value for shareholders
Hammerson added: “The Intu Acquisition will combine two high-quality portfolios under Hammerson’s management team. Hammerson will become the undisputed market leader in the UK with 19 of the top 30 shopping centres.
“Targeted asset disposals will allow for further reinvestment into higher return pan-European opportunities such as Premium Outlets, Ireland and Spain to deliver future value for shareholders.”
The Hammerson Board believes that Klépierre’s property portfolio is of materially lower quality than that of Hammerson.
The firm added: “Furthermore, there appears to be limited commercial rationale behind the proposed combination. The consequence for Hammerson shareholders is that the Proposal would result in minority ownership of a less attractive portfolio with lower growth prospects.”
