French raider stalks shopping mall owner
A DEAL uniting the owners of some of the UK’s biggest shopping centres could now be under threat from a French gatecrasher.
Mall operator Klepierre, which has more than 100 shopping centres in 16 countries, made a cash and shares approach for Hammerson this month valuing the Brent Cross and Bullring owner at £5billion or 615p a share.
Shares in Hammerson, which rejected the “unsolicited and opportunistic” proposal as significantly undervaluing the company, jumped 105¼p to 542½p. Klepierre is weighing its options. The FTSE 250 firm has already agreed to buy Lakeside and Trafford Centre operator Intu in a £3.4billion deal to create Britain’s biggest property company with assets worth £21billion.
It is set to be completed by the end of this year.
Hammerson recently fell out of the FTSE 100 index after a weakening of its share price amid concerns that buying Intu would dilute the quality of its portfolio.
But it reaffirmed its “full commitment” to the Intu acquisition, which it believes will deliver “significant value” for its shareholders.
Hammerson chairman David Tyler said: “The proposal from Klepierre 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.
“Klepierre is asking our shareholders to accept a price for their Hammerson shares which includes a large element of paper in a company which in our view has a lower quality portfolio and lower growth prospects. Our board sees absolutely no merit in the proposal and strongly advises shareholders to take no action.”
Klepierre said a further announcement would be made “if and when appropriate”. Peel Hunt analyst Matthew Saperia said: “Despite the rejection, Hammerson is now in play and the likelihood of its proposed merger with Intu proceeding has decreased considerably.”