Hammerson clear for £3.4bn deal for Intu after Klepierre drops bid

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Shopping centre owner Hammerson is clear to seal a much anticipated £3.4billion acquisition of Intu after French firm Klepierre said it does not intend to make a formal offer for the Bullring owner.

Klepierre said today that its chairman Jean-Marc Jestin held a meeting with his Hammerson counterpart David Tyler on Monday to table a £5.04bn proposal worth 635p per share.

However, following the meeting, it is walking away because Hammerson ‘did not provide any meaningful engagement’ with the offer.

Path clear: Shopping centre owner Hammerson is clear to seal a £3.4bn takeover of Intu after French firm Klepierre has said it does not intend to make a formal offer for the Bullring owner

Path clear: Shopping centre owner Hammerson is clear to seal a £3.4bn takeover of Intu after French firm Klepierre has said it does not intend to make a formal offer for the Bullring owner

Path clear: Shopping centre owner Hammerson is clear to seal a £3.4bn takeover of Intu after French firm Klepierre has said it does not intend to make a formal offer for the Bullring owner

Klepierre said in a stock exchange announcement: ‘The board of Hammerson did not provide any meaningful engagement with respect to the increased proposal and, after careful consideration, Klepierre has concluded that it does not intend to make an offer for Hammerson.’

The latest figure, an advance on Klepierre’s initial 615p cash-and-shares bid worth £4.88bn, represented a premium of 45 per cent to Hammerson’s share price on March 16.

However Hammerson has branded Klepierre’s overtures as ‘wholly inadequate’ and ‘entirely opportunistic’.

Mr Tyler said earlier this week: ‘The board has considered the revised proposal from Klepierre carefully.

‘At 635p, it is only a three per cent increase on the previous proposal and continues very significantly to undervalue the company.’

Klepierre’s decision to back off paves the way for Hammerson’s preferred option of a £3.4bn tie-up with rival Intu, which operates the Trafford Centre in Manchester.

Northern powerhouse: Hammerson's rival Intu operates the Trafford Centre in Manchester

Northern powerhouse: Hammerson's rival Intu operates the Trafford Centre in Manchester

Northern powerhouse: Hammerson’s rival Intu operates the Trafford Centre in Manchester

Hammerson is now expected to press ahead with an all-share takeover of Intu, which would create Britain’s biggest property company with £21bn worth of assets across Europe that includes Bicester Village and Brent Cross shopping centres.

Hammerson shares plummeted more than 13 per cent shortly after the market opened today to 453p.

Intu’s stock was trading broadly flat.

David Brockton, analyst at Liberum, said: ‘Klepierre’s decision to walk away from a bid could still leave Hammerson’s management and shareholders in an unfortunate short-term position.

‘The market has clearly taken a negative view of Hammerson’s proposed acquisition of Intu.

‘However, if the Intu deal does not complete, it would be a rejection of management’s vision.

‘It will take some doing for the shares to achieve Klepierre’s 635p second proposal in the near-term.’

 

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