Hammerson rejects French rival’s revised takeover bid
Shopping centre owner Hammerson has has rejected a revised proposal from French real estate firm Klépierre, stating the offer “continues very significantly to undervalue the company.”
Klépierre made its first bid to acquire Hammerson, which owns the Victoria Gate centre in Leeds, in March. However, it has now made a revised proposal of 635 pence per Hammerson share, comprising 50% in new Klépierre shares and 50% in cash – 3% above its original bid.
The proposal was put forward in a meeting between David Tyler, chairman of Hammerson, and the chairman of the executive board of Klépierre, Jean-Marc Jestin, last night.
Hammerson said: “The Revised Proposal represents only a marginal increase to Klépierre’s unsolicited proposal of 615 pence made on 8 March 2018, which Hammerson’s Board unanimously rejected on the basis that it very significantly undervalued Hammerson, its track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation.
“Accordingly, the Board of Hammerson, having assessed the Revised Proposal with its advisers, believes it is not at a price that justifies further engagement with Klépierre and has unanimously rejected it. The Board remains open to discuss any proposal from Klépierre which properly reflects the value of the Company.
Tyler added: “The Board has considered the revised proposal from Klépierre carefully. At 635p, it is only a 3% increase on the previous proposal and continues very significantly to undervalue the company.”
There can be no certainty of a firm offer for Hammerson from Klépierre or the terms on which any firm offer might be made. This morning’s announcement was made without the consent of Klépierre.
Klépierre is required, by no later than 16 April, to either announce a firm intention to make an offer for Hammerson or announce that it does not intend to make an offer.
