Hammerson PLC lines up £3.4bn deal to buy Intu

Property group Hammerson has made a £3.4bn offer for rival Intu, to create a £21bn portfolio of retail developments across Europe.

Hammerson has offered 253.9p per Intu share, equivalent to £3.4 billion for the entire issued and to be issued share capital of the retail centre owner.

“The boards of Hammerson and Intu believe that there is a compelling strategic rationale for the Acquisition, which will bring together their high-quality retail property portfolios and their combined expertise to create a leading European retail REIT with a strong income profile and superior growth prospects,” said Hammerson.

Intu shareholders would receive 0.475 of a new Hammerson share for each existing Intu share held under the deal. Based on Hammerson’s closing price on Tuesday, the deal values each Intu share at about 253.9 pence – a 28% premium to the close on Tuesday – valuing Intu as a whole at GBP3.40 billion.

The combined group will be led by Hammerson chief executive David Atkins and Timon Drakesmith, the firm’s Chief Financial Officer, and will be called Hammerson plc.

David Tyler, chairman of Hammerson, will be chairman of the enlarged group, and John Whittaker, deputy chairman of Intu, will be deputy chair of the new company. John Strachan, chairman of Intu, will join the board of the combined group as senior independent director. The newly created company overall will have six directors nominated by Hammerson and four directors nominated by Intu.