Westfield agrees to $US25b takeover

FRANK Lowy’s Westfield Corporation has agreed to a takeover from European property giant UnibailRodamco in a deal worth $US25 billion.

Mr Lowy, Westfield’s chairman, and his sons Steven and Peter, who are cochief executives, will vote in favour of the deal, which values each Westfield security at $US7.55 ($A10.01), a premium of 17.8 per cent to the value of Westfield securities at the end of Monday’s trading session.

The deal values the Lowy family’s stake in Westfield at just under $A2 billion.

Unibail-Rodamco is a European listed commercial property company based in Paris, and the largest commercial landlord in Europe.

Frank Lowy said the takeover is a culmination of the strategic director Westfield has taken since a restructure in 2014, when it separated its Australian and New Zealand assets from those in the UK and US.

“Unibail-Rodamco’s track record makes it the natural home for the legacy of Westfield’s brand and business,” he said in a statement.

“We look forward to seeing Westfield continue to grow as part of the world’s premier owner of flagship shopping destinations.”

Mr Lowy will retire as chairman of Westfield, but will chair an advisory board for the new company, while his sons Peter and Steven will also retain leadership roles.

Pending regulatory and shareholder approval, the takeover could be completed by mid-2018.

AAP