REPEAT: Hammerson Rejects Surprise GBP4.5 Billion Klepierre Approach

19th Mar 2018 06:55

LONDON (Alliance News) - Europe-focused shopping centre firm Klepierre made a takeover approach for UK peer Hammerson PLC a fortnight ago in the middle of Hammerson's own GBP3.40 billion deal to buy Intu Properties PLC, the Times reported on Monday.

Klepierre Chairman Jean-Marc Jestin made the offer - reputedly at a 30% premium to Hammerson's share price - directly to Hammerson Chairman David Tyler, according to the Times.

Shares in Hammerson closed at 437.10 pence on Friday, giving it a market capitalisation of GBP3.46 billion. A 30% premium would imply a price around GBP4.50 billion or around 570 pence per share bid.

The deal, which is said to have been a cash and share offer, was almost immediately rejected by the FTSE 100-listed firm due to being seen as undervaluing the business, the newspaper said.

The Times reported the interest of Klepierre in Hammerson could threaten the all-share deal to merge with Intu announced in December. It is understood by the newspaper that Klepierre was keen to close any deal before the Intu merger completed.

The Hammerson-Intu merger is due to complete by the end of 2018.

Klepierre - which is focused on the prime shopping centre sites - is located across 16 countries with over 100 malls. According to the Times, it has experience of large deals of this kind. In 2014 it closed the EUR7.2 billion agreement to buy Netherlands-based property firm Corio NV.

https://www.thetimes.co.uk/edition/business/secret-bid-for-hammerson-hh3mgn9qp

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