Shares in property developer Helical surged nearly five per cent this morning after it confirmed it has received multiple unsolicited approaches from buyers.
“We can confirm that the company has in the recent past been in receipt of more than one unsolicited approach from different parties,” it announced to the stock exchange.
“To date all proposals made have been at a significant discount to the Company’s EPRA NAV [net asset value per share] and therefore in the board’s view did not reflect the fair value of the company,”
Helical said it had “been open to engaging with these potential offerors, including allowing due diligence to be conducted”.
It said it was not “at present” in receipt of an approach that would have to be announced under the Takeover Code.
The Sunday Times reported yesterday that Helical had received a bid from an unnamed US private equity firm.
The approach reportedly valued Helical at a “significant premium” to its then share price of 355p and market capitalisation of £425m, but less than its NAV of £567.4m.
Helical’s shares rose nearly five per cent to 372p this morning, having hit a high of 390p.
The share prices of listed London developments have dropped sharply since the 2016 referendum, often leaving their market capitalisations below their NAV.
Chief executives have typically been resistant to selling for a price below their NAV.
Last year, Hammerson rejected a £5bn approach from French property firm Klepierre, on the grounds that it undervalued the business.
The offer was at a significant premium to its share price but was below its NAV.