The British shopping centre operator Hammerson has announced that it has won shareholder support on its asset selling programme aimed to reduce company debt. Indeed, shareholder Elliot Advisors has backed the plan to offload more assets as well as expand its board.
Hammerson announced on Monday that it planned to offload more of its assets in 2019, following the sale of assets worth over £570 million the year prior. The sale of additional assets, if entirely successful, aims to target a debt of £3 billion for the 2019 financial year.
The company outlined its plans to appoint an additional two non-executive directors in 2019.
In a separate statement to Hammerson’s financial results for the previous year, the U.S activist investor Elliott Advisors commented:
“Following constructive dialogue with Hammerson’s Board, Elliott welcomes both the Board’s decision to search for two additional independent non-executive Directors, and the formation of a new Investment and Disposals Committee, with oversight and responsibility for the Company’s ongoing disposals programme.”
“This increased focus on strategic disposals, as marked by updated targets for 2019 and a current pipeline of potential sales of over £900 million, signals a positive development in the company’s progress, and its ability to ensure that its portfolio of high quality assets delivers compelling value for all shareholders.”
As of July 5th, Elliott Advisors has held a 5.3% stake in the British shopping centre operator. It has agreed with Hammerson that it would vote for the resolutions proposed by the company at the forthcoming general meeting.
Elliott Advisors has been pressuring Hammerson to fundamentally reshape its portfolio. It is understood that last year, the shareholder used the decline on Hammerson’s share price to strengthen its 5.3% stake.
At 09:34 GMT Monday, shares in Hammerson plc (LON:HMSO) were trading at -1.97%.