One of Hammerson PLC’s (LON:HMSO) largest shareholders has said it will vote against the firm’s £3.4bn takeover of rival shopping centre owner Intu Properties PLC (LON:INTU) at an upcoming meeting.
Dutch pension fund manager APG has written to the top brass at Hammerson, explaining that it has “substantial concerns” over the deal.
READ: French real estate group Klepierre gives up on attempt to buy Hammerson
“Furthermore, we believe the proposed acquisition will significantly dilute Hammerson's high-quality portfolio,” the pension fund said.
APG – which is the company third-largest shareholder with a 7.2% stake – added that the takeover was “insufficiently attractive” to shareholders.
The tie-up would see the enlarged group own most of the UK’s prime shopping centres, which Hammerson boss David Atkins has said is the best long-term decision for the company.
But many are sceptical about the idea of increasing the group’s exposure to the UK market, especially given that a number of high street chains are struggling.
Stagnant wages and rising living costs have squeezed consumers, which has prompted several high-profile casualties including Toys R Us and Maplin, while several others are struggling to keep their heads above water.
The shareholder dissent comes as French shopping centre company Klépierre backed away from its own £5bn proposed takeover of Hammerson, citing a “lack of meaningful negotiation” with the company’s board.