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Top Hammerson shareholder set to vote against Intu takeover

Published: 16:37 16 Apr 2018 AEST

bullring shopping centre in birmingham
One of Hammerson’s flagship shopping centres is the Bullring in Birmingham

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.

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