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Westfield revises restructure plan

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Westfield Group has rejigged its proposal for the restructure of its $70bn empire so that the deal is more in favour of investors in its Australian sister trust Westfield Retail, as flagged earlier by Data Room.

Under the plan, announced to the ASX, Investors in Westfield Retail Trust will receive around an extra $300m of the entity to be created from the merger of that stock with the Australian and New Zealand business.

Westfield Group chairman Frank Lowy said the group has met with key investors in both WDC and WRT over the planned restructuring along geographic lines.

"In response to some concenrs raised and in consultation with the independent directors of WRT, WDC has decided to improve the merger terms for WRT security holders," Lowy said.

The adjustment will be achieved by reducing the net debt of Westfield's business contributed to the Retail Trust from $7.1bn to $6.8bn.

DataRoom understands that at least two key investors in Westfield Retail who were planning to vote against the deal believe the rejigged proposal will be enough to get the deal over the line.

The independent expert Grant Samuel & Associates has confirmed that the adjusted proposal was in the best interests of WDC securityholders.

The announcement will allow Westfield to reissue scheme documents without changing the date of its meeting for an investor vote on May 29.

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Westfield says it is will adjust the terms of its merger with Westfield Retail Trust to address shareholder concerns.

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