Shopping centre owner Hammerson agrees purchase of rival Intu

Intu-owned Trafford Centre, Manchester
06/12/2017 - 10:49
Property group and owner of a selection of the UK’s largest shopping centres, Hammerson Plc, has reached an agreement with market rival, Intu Properties plc, to purchase it for £3.4 billion.

The groups say the merger will create a £21b pan-European portfolio of retail and leisure destinations.

The two companies reach an agreement after Hammerson offered 253.9p per Intu share, equivalent to £3.4 billion for the entire issued and to be issued share capital

The enlarged group will be led by Hammerson chief executive, David Atkins, and its chief financial officer, Timon Drakesmith, and will be called Hammerson plc.

David Tyler, the chairman of Hammerson, will be chairman of the new group.

John Whittaker, deputy chairman of Intu, will become deputy chairman of the group while John Strachan, chairman of Intu, will join the board as senior independent director.

Overall, the group will have six directors nominated by Hammerson and four directors nominated by Intu.

Tyler said: “This transaction will deliver real value for shareholders. The financial strength of the enlarged group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”

Strachan added: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.

“Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities.”

Hammerson’s portfolio of shopping centres includes Brent Cross, the Bullring in Birmingham, Cabot Circus in Bristol, Bicester Village and Dundrum Town Centre in Dublin.

Intu, meanwhile, owns the Arndale and Trafford Centre in Manchester as well as Lakeside in Essex and Xanadu in Madrid.

Intu’s shares jumped by 19.8% this morning while Hammerson shares were down 1.5%.

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