Friday 25 May 2018

Dundrum owner rejects fresh €5bn offer

Simon Betty, Hammerson Ireland managing director
Simon Betty, Hammerson Ireland managing director
John Mulligan

John Mulligan

Hammerson, the co-owner of the Dundrum Town Centre, has rejected a fresh takeover approach from French company Klépierre - saying the new £5bn (€5.7bn) proposal continues to undervalue the UK property group.

But Hammerson said it remains open to discuss any proposal from Klépierre "which properly reflects the value of the company".

The latest proposal from Klépierre valued Hammerson at £6.35 per share - a 3pc increase in the previous proposal from the French firm. Klépierre has proposed paying half of that in cash and half in Klépierre's shares.

"The revised proposal represents only a marginal increase to Klépierre's unsolicited proposal of £6.15 made on March 8, which Hammerson's board unanimously rejected on the basis that it very significantly undervalued Hammerson, its track record of delivery, the quality of its portfolio, its market positions, and the opportunities it has for future value creation," the Dundrum co-owner said in a statement.

It added: "Accordingly, the board of Hammerson, having assessed the revised proposal with its advisers, believes it is not at a price that justifies further engagement with Klépierre and has unanimously rejected it."

"At £6.35, it is only a 3pc increase on the previous proposal and continues very significantly to undervalue the company," said Hammerson chairman David Tyler.

Under UK rules, Klépierre has until April 16 to announce a firm intention to make an offer for Hammerson, or to announce that it does not intend to make an offer.

Hammerson owns 50pc of Dundrum along with German insurer Allianz. It also owns 50pc of the Pavilions shopping centre in the north Dublin suburb of Swords, and half of the Ilac Centre in the capital.

Hammerson also owns 41pc of the Kildare Village outlet mall and is planning a major development called the Dublin Central scheme.

Hammerson said it had also delayed the finalisation of a £3.4bn (€3.9bn) plan to buy UK rival Intu until it has more clarity regarding the approach for Hammerson from Klépierre.

Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business