Hammerson PLC (LON:HMSO) said its board has “unanimously rejected” a revised bid proposal from French property giant Klépierre but added that it remains open to discuss any proposal “which properly reflects the value” of the company.
In a statement, the FTSE 250-listed real estate investment trust said the revised proposal of 635p per Hammerson share, comprising 50% in new Klépierre shares and 50% in cash.
READ: Hammerson shares leap as Klépierre says property firm rejected its bid "in less than 24 hours"
It added that the revised proposal was conveyed in a meeting between Hammerson chairman, David Tyler, and the chairman of the executive board of Klépierre, Jean-Marc Jestin, on the evening of 9 April 2018.
Hammerson pointed out that the new proposal represents only a marginal increase to Klépierre's unsolicited offer approach of 615p per share made on 8 March 2018, which the UK firm’s board also unanimously rejected.
The firm said the bid very significantly undervalued the group, its track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation.
The company said having assessed the revised proposal with its advisers, it believes the revised proposal is not at a price that “justifies further engagement with Klépierre and has unanimously rejected it.”
Only a 3% increase on previous proposal
Hammerson’s chairman, said: "The Board has considered the revised proposal from Klépierre carefully. At 635p, it is only a 3% increase on the previous proposal and continues very significantly to undervalue the company."
The group concluded shareholders are strongly advised to take no action as there can be no certainty of a firm offer for Hammerson from Klépierre or the terms on which any firm offer might be made.
The UK firm added that today’s announcement was made without the consent of Klépierre.
Hammerson – which was demoted to the FTSE 250 index from the FTSE 100 last month following a share price slide – reached agreement at the end of last year to buy mid-cap shopping centres firm Intu Properties PLC (LON:INTU) for £3.4bn, a deal which will create a £21bn portfolio of retail developments across Europe.
Klépierre’s second proposal “underwhelming”
In early morning trading, Hammerson shares were 1.4% lower at 517.6p, while Intu shares gained 2.6% at 209.4p.
In a note to clients, analysts at Liberum Capital called Klépierre’s second proposal “underwhelming”.
They said: “We believe Klépierre needs to sharpen its pencil further if they want to be confident of securing the approval of Hammerson’s shareholders, if not its Board. The put up or shut up deadline remains 5pm on 16 April.”
Liberum retained a ‘hold’ rating and 610p target price on Hammerson shares.
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