Klépierre confirmed a media report that it proposed on March 8 to acquire Hammerson PLC in a deal valuing the latter's shares at 615 pence apiece.
Klépierre said Hammerson's board rejected the proposal March 9.
The French real estate investment trust said its bid was made to the Hammerson board on a nonadversarial basis and included a combination of cash and shares. The proposal, which The (U.K.) Times noted to be worth £5 billion, reflects an approximately 40.7% premium to the 437.10 pence closing price of Hammerson ordinary shares on March 16, Klépierre said.
In a separate statement, Hammerson said it turned down the unsolicited offer on the grounds that it "significantly undervalues" the company and added that the offer price reflects a 20.7% discount to Hammerson's net asset value of 776 pence per share as of year-end 2017.
In the release, Hammerson Chairman David Tyler called the offer "wholly inadequate and entirely opportunistic." He added that the board is advising the company's shareholders to not take any action with regards to the proposal.
Hammerson noted that its published NAV does not take into account long-term future value drivers such as its Premium Outlets business, Irish and French assets and development pipeline.
The company said it remains fully committed to its planned £3.4 billion merger with Intu Properties PLC, to which both companies agreed in December 2017. Hammerson and Intu aim to create an entity with a £21 billion pan-European retail and leisure portfolio. The deal is expected to become effective in the fourth quarter, subject to the fulfillment of certain conditions.