Published: Tue, March 20, 2018
Money | By Ethel Goodwin

Hammerson Rejects Surprise GBP4.5 Billion Klepierre Approach

Hammerson Rejects Surprise GBP4.5 Billion Klepierre Approach

French real estate investment fund Klepierre this morning confirmed it made an approach for Hammerson that was rejected in less than a day.

Klépierre said it approached London-listed Hammerson on March 8 to discuss a possible offer for the business of 615p a share - a premium of nearly 41% on its share price on March 16.

French shopping centre operator Klepierre proposed buying rival Hammerson in a deal valued at £4.88 billion, sending the British company's shares up 27 per cent on Monday. The approach was on the basis of 50 percent in cash, and the other half in Klepierre shares. Intu's share price meanwhile has been steady, standing 39 percent higher at 204.50p, outperforming the mid-cap FTSE 250 index which has fallen marginally into negative territory and is now 0.38 percent worse off at 19,729.54 points. The market value of the company Klepierre declined by 3.8%.

'"The proposal from Klépierre is wholly inadequate and entirely opportunistic, ' says Hammerson's chairman David Tyler".

Hammerson said it remains fully committed to its Intu Properties acquisition. "The Board strongly advises shareholders to take no action".

Hammerson shares shot up 28% in early trade on the JSE, after the French real estate investment trust (Reit) Klépierre approached the United Kingdom company with a takeover offer.

"Accordingly, there can be no certainty that any offer will be made", it added. Based on Friday's closing price, Hammerson had a market capitalisation of GBP3.47 billion.

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.

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