Major Westfield Group change announced – here's what you need to know

Things are progressing very quickly with the restructure.

a woman

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

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%.

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 »