UK-listed real estate investment trust (REIT) Hammerson has rejected a takeover proposal from France鈥檚 碍濒茅辫颈别谤谤别.
Hammerson said it rejected the 615p (702.3c) a share proposal on the grounds that it 鈥漵ignificantly undervalues鈥� the company.
A deal would have given Hammerson a market capitalisation of around 拢4.9bn. 碍濒茅辫颈别谤谤别 has a current market capitalisation of around 鈧�10.5bn.
The proposal, which was received on 8 March, comprised 50% in new 碍濒茅辫颈别谤谤别 shares and 50% in cash.
In December last year, Hammerson and another UK shopping centre owner Intu Properties agreed to merge in a deal that is expected to create a 拢21bn (鈧�23.8bn) pan-European REIT.
Hammerson said today it remains committed to the acquisition of Intu Properties, which the board continues to 鈥渂elieve will deliver significant value鈥� for Hammerson shareholders.
David Tyler, chairman of Hammerson, said: 鈥淭he proposal from 碍濒茅辫颈别谤谤别 is wholly inadequate and entirely opportunistic.
鈥淚t 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.鈥�
The proposal per share represents a significant discount of 20.7% to Hammerson鈥檚 European Public Real Estate net asset value per share of 776p as at 31 December 2017, Tyler said.
In response, 碍濒茅辫颈别谤谤别 confirmed it made the proposal with the intention of engaging in a dialogue regarding a possible offer to acquire Hammerson on a standalone basis.
鈥漈he board of Hammerson rejected the proposal in less than 24 hours on 9 March 2018,鈥� the listed French REIT said.
碍濒茅辫颈别谤谤别鈥檚 proposal represented a 40.7% premium to Hammerson鈥檚 stock closing price of 437.10p on Friday.
Hammerson shares in London currently trade 24% higher at 543.80p.
碍濒茅辫颈别谤谤别 said the proposal does not constitute an offer, adding that there can be no certainty that any offer will be made.
