The securities of Westfield Group (ASX: WDC) and Westfield Retail Trust (ASX: WRT) will both be suspended from quotation on the Australian Stock Exchange at close of business this afternoon after the pair gained all necessary approvals to proceed with their $70 billion restructure.
As of tomorrow (Wednesday, June 25) two new entities will trade on the exchange in their place on a deferred settlement basis (normal trading is expected to commence on 3 July 2014). Westfield Corporation Limited, which will own and operate all of the Group’s international assets, will trade under ticker code (ASX: WFD). Meanwhile, Scentre Group, which will own and operate all Australian and New Zealand assets, will trade under ticker code (ASX: SCG).
As part of the deal, Westfield Group shareholders will own 100% of Westfield Corporation and 48.6% of Scentre Group. Westfield Retail Trust security-holders will own the remaining 51.4% of Scentre Group.
Further, all Westfield Group shareholders will receive 1,000 shares in the new Westfield Corporation as well as 1,246 shares in Scentre Group for every 1,000 securities held. Meanwhile, for every 1,000 Westfield Retail Trust securities held, the security-holder will receive 918 shares in Scentre Group as well as a cash payment of roughly $285.
Investors will likely breathe a sigh of relief once the restructure is complete as it has been the subject of much controversy since it was proposed on December 4 last year. Westfield Group’s shares are trading 2c or 0.2% lower today, while Westfield Retail Trust has jumped 4.5c or 1.4%.
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