Major investors back Hammerson in row with Lighthouse

Legal & General Investment Management (LGIM) and Schroders, which between them own more than 6% of Hammerson, are backing its board's strategy in the face of a proxy battle, Sky News reporfted.

Lighthouse, the investment vehicle of former Hammerson director Desmond de Beer, which holds nearly 23% of the company, has tabled resolutions to appoint two new board members because of its discontent over the company's strategy.

However, opposition to its campaign mounted on Friday, however, when APG, the second-largest investor with 20% of the stock, also opposed the proposals.

A Schroders spokesperson said: "As a long-term active investor in Hammerson, our aim is to use our influence to engage constructively and thoughtfully with the companies in which we invest. We support the board's strategy of divestment and deleveraging, and believe the current board is well-positioned in regards to skills, experience and diversity."

"As such, we will not be supporting the shareholder resolutions proposed by Lighthouse Properties plc at the upcoming annual meeting."

Meanwhile, an LGIM spokesperson said it remained "supportive of Hammerson's board and the management team, and we agree with the decision to retain cash to further strengthen the balance sheet rather than paying a final dividend for 2022".

"Our view is that the resolutions proposed would act to destabilise the board and disrupt the organisation. Long-term shareholder value creation should continue to be the priority for Hammerson, and at this point we believe the board composition as it stands is optimal to deliver this."

Reporting by Frank Prenesti for Sharecast.com