The Board of Hammerson has withdrawn its recommendation to Hammerson shareholders to vote in favour of the Intu acquisition.
The Board reassessed the proposed deal in light of updated information on current market dynamics in the UK. Over the last five months, the financial strength of retailers and other tenants in the UK has softened and a number of retailers have entered into administrations or CVAs, while consumer confidence has also remained subdued. Whilst Hammerson has proven its portfolio is well positioned to weather the current environment, the equity market now perceives a heightened level of risk associated with the UK retail property sector as a whole.
David Tyler, Chairman of Hammerson, said: “After careful consideration, the Board has concluded it is no longer in the best interests of shareholders to carry out the Intu Acquisition. In recent weeks, investors have told us they share our view of the exceptional quality of our portfolio and that they have great confidence in our management team. The Board has complete conviction in Hammerson’s prospects as a standalone business as we pursue our plans for future growth.”
David Atkins, Chief Executive of Hammerson, added:“Hammerson is an ambitious company with a disciplined approach to the pursuit of compelling investments to strengthen its portfolio. It is clear that the heightened risks to the Intu Acquisition now outweigh the longer-term benefits. We have a clear strategy that has delivered consistent, strong returns on a standalone basis and we look forward to updating the market in the near term on our plans to accelerate the delivery of further value for shareholders.”
