Here's why Westfield Group has jumped 1.6% today

The trading halt is over and a decision has been made – here's what you need to know.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A decision has finally been made – Westfield Group's (ASX: WDC) $70 billion restructure will go ahead after receiving the necessary approval from Westfield Retail Trust (ASX: WRT) shareholders today.

Today's result was always going to be a close finish. While the Group needed to gain approval from at least 75% of Westfield Retail Trust's shareholders, they managed to receive a "Yes" vote from just over 76% of shareholders. The result will see both entities' local assets merged to form Scentre Group, while Westfield Group's international assets, mainly in the US and UK, will be split off to form Westfield Corporation.

Of course, there has been plenty of controversy surrounding the deal. Since it was announced on December 4 last year, the market has remained divided over the fairness of the proposal, including its merger ratio, the gearing levels that would be assumed by Scentre and the costs of the Group's management platform. Other investors have also expressed their frustrations at the prospect of yet another Westfield restructure.

Regardless, the deal will now go ahead and will enable both entities to focus on funding their own developments. It is thought that this will be the best way to maximise shareholder returns going forward. For instance, shareholders of Westfield Group will enjoy the benefits of new developments like the World Trade Centre mall, located in New York, as well as various other UK shopping centres which could prove incredibly profitable in the future.

Following the announcement of the result, Westfield Group's shares opened from their trading halt up 17c or 1.6% at $10.98 while Westfield Retail Trust is also trading just under 0.2% higher. In comparison, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is still down 0.4% for the day.

Westfield could prove to be a good investment over the coming years, although I think there are far better alternatives to take advantage of instead.

Instant access to 18 of our top recommendations – just 2 clicks!

For a limited time only, you can receive INSTANT ACCESS to over one dozen BUY Recommendations as well as all of The Motley Fool's premium investing reports, including "The 5 Best Stocks in Australia REVEALED" and "How to Profit from the IT Arms Race" – all exclusive to the Motley Fool Share Advisor website!

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »