Hammerson Plc abandons bid to purchase Intu Inc. for £3.4 billion
Category: #retail  By Dhananjay Punekar  Date: 2018-04-20
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Hammerson Plc abandons bid to purchase Intu Inc. for £3.4 billion

Hammerson Plc, a UK-based property development & investment firm, has decided to abandon its acquisition bid for Intu Inc., estimated at £3.4 billion. The UK company declared that the business decision has been based on the rising level of uncertainty haunting the UK retail property industry.

Incidentally, as per some of the key officials of the firm, the company has withdrawn the takeover bid keeping in mind the greater interests of Hammerson’s stockholders. Industry experts however, seem to hold a different view, as they state that the withdrawal of the acquisition proposal is based on the disconnect observed between Hammerson’s own stock price and the true value of its business as well as future prospects.

One of the Hammerson’s top 20 investors, JO Hambro Capital Management has appreciated the strategic move of the firm claiming that the decision will help the property development & investment company to focus on higher growth portfolios such as value retail. It has been observed that since Hammerson announced its bid to acquire Intu in December last year, the UK retail asset sector has been the recipient of a slightly negative air across the globe. The key officials of Hammerson have stated that despite its strong operating margins in the first quarter of this year, the perception related to the overall UK retail property market has declined since the beginning of this year.

Reportedly, at the end of the last year, Hammerson had made an all-share offer to purchase Intu Inc. However, the board of directors at Hammerson had been reconsidering the firm’s plan to acquire Intu in the view of the changes taking place across the retail market in the UK. Apparently, this resistance may have stemmed from the fact that the supposed increased risks associated with Intu’s purchase far outweigh the expected long-term revenue generation that the firm may benefit from in the long run.            



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Dhananjay Punekar

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Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

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