French Mall Firm Abandons Bid For Dundrum Town Centre Co-owner
Klépierre has reportedly walked away from its take over offer of £4.9 billion (€5.6 billion) for the Dundrum Town Centre co-owner Hammerson.
In a statement the French mall operator confirmed that on 9 April 2018, Jean-Marc Jestin, the Chairman of the Executive Board of Klépierre, met with the Chairman of the Board of Directors of Hammerson, David Tyler, and made an increased proposal to Hammerson on a standalone basis of 635 pence per Hammerson share for the entire issued and to be issued share capital of Hammerson.
The Increased Proposal represents a premium of 45% to the UK property giant's undisturbed share price of 437.10 pence per Hammerson share on 16 March 2018.
Klépierre stated ,"the Board of Hammerson did not provide any meaningful engagement with respect to the Increased Proposal and, after careful consideration, Klépierre has concluded that it does not intend to make an offer for Hammerson."
In March this year, the UK property giant's chairman, Tyler previously claimed that the bid was ‘wholly inadequate’ for the value of its portfolio, which aslo includes a stake in the Ilac Centre and the Pavilion Shopping Centre in Swords.
“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,” Tyler said at the time.
Tyler said Hammerson’s board saw 'absolutely no merit' in the proposal and had unanimously rejected the approach.
The Klépierre offer reportedly represented a 40% premium on Hammerson’s closing share price, however it was well below the company’s share value of early 2015.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.