Hammerson minority shareholders willing to settle at steep discount to NAV
- Two minority shareholders say willing to take Klépierre’s 635p/share bid
- J O Hambro internal note calls for offer approaching 700p/share
Hammerson [LON:HMSO] shareholders would be open to an offer from Klépierre [EPA:LI] well below its net-asset value (NAV), said three minority shareholders in the UK real-estate group.
Two of the shareholders said they were ready to support Klépierre's latest revised approach.
On 19 March, Klépierre announced a 615p/share possible offer for Hammerson comprising an even split of cash and shares. On 11 April, Klépierre revised its bid to 635p/share, which was also rejected by Hammerson. Hammerson is declining to engage with the bidder and has already made an offer for Intu Properties [LON:INTU], which would have to be abandoned under any deal with Klépierre.
Hammerson has spoken with its shareholders on the situation and has found support for its refusal to countenance an offer at 635p/share, with its net-asset value at 790p/share, it was said.
Although two minority shareholders told this news service that they support the latest bid as it stands, J O Hambro – which holds 1.4% of Hammerson – issued an internal bulletin calling for an offer “towards the 700p/share level”.
J O Hambro would settle below NAV, as “our test is where the share price could credibly move to on a two- to three-year timeline”. Hammerson shares are “unlikely to ever trade” at NAV, J O Hambro said.
Two other minority shareholders were more eager to accept the current offer. The 635p/share offer is opportunistic but worth taking, one them said. An even cash-and-shares split is fine, as equity is the easiest way for Klépierre to pay fair value, this shareholder, who also holds a small stake in Klépierre, said.
This shareholder said he would have even taken the 615p/share offer. The offer is preferable to Hammerson’s proposed takeover of Intu as Intu is exposed to a different segment of the UK commercial real-estate market, he explained.
A fourth minority shareholder said that Hammerson’s stated plan to sell off parts of Intu’s property portfolio “may create a drag on return through time should the deal progress”.
The second minority shareholder said that he was on the fence at 615p/share before the price hike clinched it for him. Even at 635p/share, Klépierre’s offer is a steep discount to Hammerson’s NAV, he said, but it represents a high enough premium over its undisturbed share price that he is willing to take it.
Klépierre and Hammerson declined to comment. Intu did not respond for comment.