UK listed retail specialist Hammerson has discarded a fresh higher takeover bid from French peer Klépierre, saying it still 'very significantly' undervalues the company.
Klépierre, which in mid-March offered 615 pence a share, valuing Hammerson at nearly £5 bn (€5.73 bn), has raised its proposal by 3% to 635 pence, half in cash and half in shares.
The proposal represents a 43% premium compared to Hammerson's share price on the day prior to the first Klépierre proposal. It is 20% below Hammerson's EPRA NAV per share of 790 pence as at 31 March 2018.
Hammerson, which last December unveiled plans to take over rival Intu to create Britain’s biggest property company, said that it 'remains open to discuss any proposal from Klépierre which properly reflects the value of the company'. It is, however, strongly advising shareholders to take no action.
Klépierre officially has until 16 April to place a firm bid or walk away from Hammerson.
Klépierre is Europe's largest listed pure retail specialist with a €23.8 bn portfolio spread across France, Spain, Italy, Portugal, Germany, CEE, Belgium, the Netherlands and the Nordics. A combination with Hammerson would create a €34 bn listed property giant, second only to Unibail-Rodamco which has some €43 bn of assets under management. Unibail-Rodamco's planned takeover of the European and US operations of Australia's Westfield group will boost its AUM to over €60 bn. Shareholders are due to vote on the Unibail-Rodamco/Westfield tie-up on 17 May.
Klépierre's bid for Hammerson is widely seen as a response to the creation of this international retail behemoth. Should it fail to launch a firm offer, Hammerson will likely go ahead with its £3.4 bn (€3.86 bn) takeover of Intu to create a group with a £21 bn pan-European portfolio.