Why the Unibail Rodamco Westfield (ASX:URW) share price is up 63% in 5 days

The Unibail Rodamco Westfield share price is soaring again today, up 17% in intraday trading and 63% in 5 days. Here's why…

| More on:
rising retail asx share price represented by excited shopper holding lots of bags best buy

Image source: Getty Images

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 Unibail-Rodamco-Westfield (ASX: URW) share price is on a tear again today, up 17% in late afternoon trading. That brings Unibail's share price gains to a whopping 63% since the closing bell rang last Monday 9 November. Despite the past week's stellar performance, the Unibail share price is still down 58% year to date.

The brick and mortar retailer was already struggling with high debt levels and some questionable asset acquisitions heading into 2020. And then its share price was savaged by COVID-19 lockdowns and social distancing in Europe, the United States and Australia, which saw many of its shopping centres temporarily shuttered.

What does Unibail Rodamco Westfield do?

Unibail is one of Europe's largest commercial real estate companies, owning a portfolio of quality retail and office complexes. It has assets in Europe, the United Kingdom and the US.

Unibail acquired Australian shopping centre operator Westfield Corporation, created by the split of Westfield Group, in 2018. This saw the Unibail share price first list on the ASX. The company makes up part of the S&P/ASX 200 Index (ASX: XJO).

Why is the Unibail share price up 17% again today?

The Unibail share price began its upward surge last Tuesday 10 November. This came after the company announced shareholders had rejected the supervisory board's 3.5 billion euro (AU$5.7 billion) capital raising via the issue of ordinary shares.

The capital raising was part of the company's wider 'Reset' plan and was intended to repay some of its outstanding debt.

However, the resolution was stringently opposed by a group of activist investors, led by Leon Bressler and Xavier Niel, who succeeded in derailing the capital raise part of the Reset plan.

In an ASX release yesterday, Unibail announced a major shakeup to its supervisory board that unfolded on Friday.

Colin Dyer resigned as chair of the board, while remaining on as a member of the board.

Leon Bressler was appointed as chair with immediate effect, while Xavier Niel took up the position on the board as member of the remuneration committee.

Investors clearly appear pleased with the new management, alongside its decision to axe the controversial capital raising in favour of more aggressively disposing of non-performing assets.

Today's 17% leap in the Unibail share price would likely have occurred yesterday, had the ASX not shut down over a software update glitch.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Oil industry worker climbing up metal construction and smiling.
Energy Shares

ASX 200 energy shares lead the market as US trade deals fuel optimism

ASX energy shares lifted 3.94% as more US trade deals led to improved market sentiment.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »