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UK Retail Developer Hammerson Rejects £4.9 Billion Takeover Deal Offer by Klepierre

It has been revealed Klepierre, a French property development firm, approached Hammerson with an offer of £4.9 billion, which had been rejected in less than 24 hours.

Established in 1990, Klepierre is a property investment trust based in Paris, which specialises in the management of retail shopping centres all across Europe. The company currently owns 150 shopping centres in 16 countries and is worth €23.8 billion. However, the firm has not yet established a business presence in the UK.

Hammerson was founded in 1942 and specialises mainly in the retail sector. The company recently acquired intu for £3.4 billion. Its portfolio includes some of the UK’s most well-established shopping centres including:

  • Bullring & Grand Central, Birmingham
  • Highcross Shopping Centre, Leicester
  • The Oracle, Reading
  • Victoria, Leeds
  • Brent Cross, London
  • Westquay, Southampton
  • Silverburn Shopping Centre, Glasgow
  • Centrale, Croydon
  • Cabot Circus, Bristol

Hammerson’s Chairman, David Tyler, commented:

“It is a calculated attempt to exploit the disconnect our recent share price performance and the inherent value of our unique and irreplaceable portfolio which is delivering record results.”

Mr Tyler further added:

“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.”

Following the news, Hammerson’s shares have increased by 27 percent to 554.2p, despite its previous share drop.

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