Hammerson share price skyrockets after Klépierre tie-up proposal

FTSE 100 group rejects offer as it looks to acquire Intu

Hammerson share price skyrockets after Klépierre tie-up proposal

Shares in Hammerson (LON:HMSO) have soared by nearly a quarter this morning, as the company disclosed that it had rejected a takeover proposal from France’s Klépierre. The move comes as the FTSE 100 group looks to acquire smaller London-listed peer Intu Properties (LON:INTU).

As of 10:03 GMT, Hammerson’s share price had added 24.59 percent to 544.60p, as compared with a 1.20-percent slump in the benchmark FTSE 100 index. Intu’s share price meanwhile has been steady, standing 39 percent higher at 204.50p, outperforming the mid-cap FTSE 250 index which has fallen marginally into negative territory and is currently 0.38 percent worse off at 19,729.54 points.

Hammerson rejects takeover proposal

Hammerson confirmed in a statement this morning that it recently received and rejected a highly preliminary and non-binding proposal from French real estate investment firm Klépierre regarding a possible cash-and-share offer, which valued the group at 615p per share.

The FTSE 100 company argues that the approach was “unsolicited and entirely opportunistic in its timing,” and that ‘very significantly’ undervalued the group. Klépierre meanwhile noted in a separate statement that its proposal, made on March 8, had been rejected in less than 24 hours.

“A further announcement will be made if and when appropriate,” the French company pointed out.

Group ‘fully committed’ to Intu deal

The proposal comes after in December, Hammerson inked a deal to acquire Intu Properties, with the tie-up expected to create a £21 billion pan-European portfolio of retail and leisure destinations.

The FTSE 100 company noted in today’s statement that it remained ‘fully committed’ to acquiring its smaller London-listed peer. Hammerson expects the tie-up to deliver about £25 million of cost synergies per annum, and further potential synergies from operational improvements and refinancing opportunities.

As of 10:14 GMT, Monday, 19 March, Hammerson plc share price is 539.20p.

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