(Alliance News) - Two shareholders have come out in support of Hammerson PLC, Sky News reported on Friday.

Hammerson faces pressure from its major shareholder Lighthouse Properties PLC, which owns nearly 23% stake in the London-based property development and investment company.

Sky News revealed on Friday that Legal & General Investment Management, or LGIM, and Schroders, which between them own more than 6% of Hammerson, are backing Hammerson in the face of a proxy battle.

In a statement issued to Sky News, 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," the spokesperson said.

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".

https://news.sky.com/story/top-city-investors-throw-weight-behind-hammerson-in-stand-off-with-lighthouse-12856976

Lighthouse Properties has tabled resolutions to appoint two new board members amid discontent over Hammerson's strategy. Lighthouse wants Hammerson to accelerate asset sales and resume dividend payments.

Hammerson will hold its annual general meeting on May 4. Lighthouse is a Mauritius-based property investor former Hammerson director Desmond de Beer.

Early this month, Hammerson backed its leadership and hit out at Lighthouse Properties.

"Lighthouse's proposals are unnecessary, distracting and value destructive. It is the board's view that neither nominee has the experience or skills that will be additive to our board and it would not be beneficial to appoint them. The board is confident that the strategy and leadership team is the right one and our performance clearly demonstrates strong strategic, operational and financial progress," Hammerson said then.

Hammerson shares rose by 1.9% to 27.14 pence in London Friday. They were 2.5% stronger in Johannesburg at ZAR6.21. In Johannesburg, Lighthouse stock was unchanged at ZAR6.752.

By Artwell Dlamini, Alliance News reporter

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