Swiss Jelmoli rejects e1.25bn Swiss Prime Site takeover bid

The board of directors of the recently-split Swiss department store property group and operator Jelmoli Holding has rejected a takeover bid from Zurich-based listed peer Swiss Prime Site, which this week said it has bought 30% of Jelmoli from majority owner Pelham Investments, controlled by a scion of the Opel carmaking family. SPS said last week it bought 29.89% of Jelmoli share capital and will submit an exchange offer for remaining equity at the equivalent of CHF466.31 per share (e308). This values Jelmoli at around CHF1.9bn (e1.25bn). The deal, based on its net asset value at 31 March, is offered on a stock basis, with SPS offering 7.7 shares for each Jelmoli stock. If the deal goes through, it will create the biggest Swiss real estate group with a portfolio of some CHF8bn (e5.3bn). Jelmoli shares were last trading around CHF402, with SPS stock at just over CHF51.