Hammerson’s board of directors has unanimously rejected a revised £5.03bn offer by French retailer Klépierre, on the basis that “it very significantly undervalued Hammerson”.
The revised proposal is 635 pence per Hammerson share, comprising 50% in new Klépierre shares and 50% in cash, and is a marginal increase to Klépierre’s unsolicited proposal of 615 pence made on 8 March 2018.
David Tyler, chairman of Hammerson, 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 company said that Klépierre is required to either announce a firm intention to make an offer for Hammerson by 16 April 2018, or announce that it does not intend to make any further offers.
Hammerson initially rejected a £4.9bn approach from Klépierre within 24 hours last month in order to focus on its plans to buy smaller rival Intu for £3.4bn, which it announced in December.
Hammerson’s total portfolio was valued at £10.58bn at the end of March, compared to £10.56b nat the end of last year, thanks to growth in Ireland.