Klepierre made bid approach to Hammerson – Klépierre has confirmed that “on 8 March 2018, Klépierre made a proposal on a non-adversarial basis to the board of Hammerson with the intention of engaging in a constructive dialogue regarding a possible offer to acquire the issued and to be issued share capital of Hammerson on a standalone basis at a value of 615 pence per Hammerson ordinary share.
The Proposal represents a premium of approximately 40.7% to the closing price of 437.10 pence per Hammerson ordinary share on 16 March 2018, and the consideration would comprise a combination of cash and shares in Klépierre.
The board of Hammerson rejected the proposal in less than 24 hours on 9 March 2018.
The proposal does not constitute an offer or impose any obligation on Klépierre to make an offer, nor does it evidence a firm intention to make an offer within the meaning of the Code. Accordingly, there can be no certainty that any offer will be made.
A further announcement will be made if and when appropriate.”
[QD comment: Hammerson’s shares are up 26.5% to 553p at the time of writing, still well short of the 615p proposal. Under the takeover code, Klépierre has until 16 April to decide if it wants to make an offer or not. Hammerson is in the throes of trying to do a deal with Intu. It is not clear what would happen to that deal if Klépierre makes a formal bid.]
Klépierre has shopping centres in 57 cities and 16 countries. Its property portfolio was worth €22.8 billion as of December 31, 2016.
Hammerson’s response – update 08:53
Hammerson notes the announcement made by Klépierre and confirms that it recently received and rejected a highly preliminary and non-binding proposal from Klépierre. The approach by Klépierre is unsolicited and entirely opportunistic in its timing, and 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. The Board of Hammerson remains fully committed to the acquisition of Intu Properties plc.
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 Proposal price of 615 pence per share represents a significant discount of 20.7% to Hammerson’s EPRA NAV per share of 776 pence as at 31 December 2017.
Intu’s comment – update at 14:32
intu notes the response by Hammerson today in relation to an announcement by Klépierre S.A. No action is required and intu will update shareholders if and when appropriate.
HMSO : Klepierre made bid approach to Hammerson