TOP NEWS: Klepierre Confirms Hammerson Rejected GBP5 Billion Approach

19th Mar 2018 07:45

LONDON (Alliance News) - France's Klepierre SA on Monday, noting press reports, confirmed it made a preliminary approach to acquire UK retail property investor Hammerson PLC, which the London-listed company subsequently rejected.

Europe-focused shopping centre firm Klepierre said it made the proposal on March 8 "on a non-adversarial basis to the board of Hammerson with the intention of engaging in a constructive dialogue regarding a possible offer".

Klepierre's offer valued Hammerson at 615p per share, a 41% premium to Friday's closing price of 437.00p. The consideration would comprise a combination of cash and shares in Klepierre.

With 794.2 million shares in issue, the offer would value Hammerson at around GBP4.88 billion. Based on Friday's closing price, Hammerson had a market capitalisation of GBP3.47 billion.

However, the Hammerson board rejected the proposal "in less than 24 hours" on March 9, Klepierre said.

Klepierre said the proposal does not constitute an offer, and there is no certainty it will make a firm offer to acquire the company, though it has until April 16 to do so under takeover rules.

Klepierre said Monday's statement with made without the approval of Hammerson. Klepierre's statement came after the Times on Monday said Klepierre made an approach to takeover Hammerson.

The approach comes in the midst of Hammerson's own GBP3.40 billion deal to buy midcap Intu Properties PLC, expected to close by the end of 2018.

In addition, the changes following the latest FTSE index review come into effect on Monday. Hammerson will begin trading in the FTSE 250, dropping out of the FTSE 100.

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