Westfield Takeover Tipped To Be Green Lit
Recent reports reveal Unibail-Rodamco’s ~$30 billion takeover of Westfield is likely to be green lit, just a month shy of the scheduled shareholder vote.
As previously reported, Westfield’s leadership has urged shareholders to accept the proposal, despite the offer’s decreasing value.
Back in December, the takeover bid was worth ~$10 per security, however, fluctuating exchange rates and a decline in the buyer’s share price has dropped the offer to ~$9/per share.
According to The Australian, most investors expect the deal to be approved – bar minor amendments – stemming from leadership’s backing, and no rival offer.
Most investors credit the strength of Unibail-Rodamco’s management team, positive return rate, credit rating and portfolio diversity for the support received.
The deal has already received sign-off from Australian and European regulators.
Folkestone Maxim Asset Management MD, Winston Sammut, predicts Unibail-Rodamco may offer a last-minute incentive to win final approval:
“I think it’s probably going to be a little bit close as far as the vote is concerned, but I tend to think it will probably be rejected if it went ahead in this current format”
“I think (Unibail-)Rodamco is likely to adjust the bid, or the offer, but I don’t think it will get back to the $10.01 sort of level. It will be somewhere in the $9s”
“And I think that will probably satisfy investors to go along with it but I don’t expect them to raise the bid until very close to the end.”