LONDON (dpa-AFX) - Hammerson plc (HMSO.L) Monday confirmed that it recently received and rejected a highly preliminary and non-binding proposal from Klépierre S.A. regarding a possible cash and share offer.
The company was responding to an announcement made by Klépierre earlier in the day about the offer. Following the news, Hammerson shares were gaining around 27 percent in London trading.
In its statement, Hammerson said the proposal, received on March 8, valued the company at a price of 615 pence per share, comprising 50% in new Klépierre shares and 50% in cash.
Hammerson noted that the approach by Klépierre is unsolicited and entirely opportunistic in its timing. The Board 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.
Hammerson said its Board remains fully committed to the acquisition of Intu Properties plc announced in December 2017, which the Board continues to believe will deliver significant value for Hammerson shareholders.
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.'
In London, Hammerson shares were trading at 551.40 pence, up 26.15 percent.
Copyright RTT News/dpa-AFX