Westfield Corp Ltd (ASX: WFD) shareholders look set to cash in after it was announced that Unibail Rodamco SE (EPA: UL) has entered into an agreement to buy the Australian shopping centre company.
Under the terms of the agreement, Westfield shareholders will receive a combination of cash and shares in Unibail Rodamco.
The deal values each Westfield share at $10.01 and represents a premium of 17.8 per cent on Westfield's closing price on December 11 of $8.50.
The transaction implies an enterprise value for Westfield of US$24.7 billion, according to Westfield.
Westfield Chairman Frank Lowy said the transaction is the "culmination of the strategic journey Westfield has been" on since its restructure in 2014.
"We see this transaction as highly compelling for Westfield's security holders and Unibail Rodamco's shareholders alike," Sir Frank said.
"Unibail Rodamco's track record makes it the natural home for the legacy of Westfield's brand and business. We look forward to seeing Westfield continue to grow as part of the world's premier owner of flagship shopping destinations."
It's been a tough year for many companies involved in Australia's retail sector with more foreign competition making their presence felt, particularly in the online sphere with the arrival of Amazon.
Myer Holdings Ltd (ASX: MYR), JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) are among the well-known Australian retailers who have suffered recently.
And those involved in commercial property have felt the flow-on effect.
The Vicinity Centres Re Ltd (ASX: VCX) has seen its share price shed about 2 per cent in the past year.
The Scentre Group (ASX: SCG), a Westfield spin-off, has not fared so badly having seen its share price gain about 4 per cent Tuesday to close only slightly down on the price it was trading at a year ago.
For most Westfield shareholders who have seen their stock sink by about 5 per cent over the past year the takeover by the French company would come as a welcome reprieve.
