Hammerson's mixed-use Victoria Quarter in Leeds in the UK. Picture: 123RF
Hammerson's mixed-use Victoria Quarter in Leeds in the UK. Picture: 123RF

UK shopping mall owner Hammerson’s share price could jump about 22% to nearly R109 when the JSE opens on Wednesday, after the group announced that French rival Klépierre had raised its bid.

Klépierre raised its bid by 3.25% to £6.35, from the £6.15 announced on March 19.

At Wednesday morning’s exchange rate of R17.12 to the pound, the offer equates to R108.69 for Hammerson’s JSE investors.

Hammerson’s closing price on Tuesday was R89.32.

The hostile bid from Klépierre caused Hammerson’s share price to jump 26% to R92 from R72.75 on March 19.

The offer from the French shopping mall owner is half in cash and half in shares. Klépierre’s share price closed 0.15% down at €32.96 in Paris on Tuesday.

Hammerson’s board urged shareholders not to accept Klépierre’s raised bid in Wednesday’s statement.

“The revised proposal represents only a marginal increase to Klépierre’s unsolicited proposal of £6.15, 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 UK group said.

“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.”