Lowy’s restructure interest in Westfield Holdings


Countries: Australia

Mr Frank Lowy today announced that his family had restructured its assets to maintain a long-term, strategic interest of approximately 30% in Westfield Holdings Limited.

This reflects the Lowy family’s desire to achieve two fundamental objectives:

1. to establish an enduring interest in Westfield Holdings, which will remain the principal investment and business activity of the family; and,

2. to provide the family with diversification and liquidity in its private investments without the need to draw on its remaining Westfield Holdings stake into the future.

To achieve this the Lowy family has embarked on a managed reduction of its 43% interest in the company. The ongoing interest in Westfield Holdings is valued today at more than $1.2 billion.

Forty million shares have been sold to Warburg Dillon Read for $308 million, representing $7.70 per share. A further 20 million shares are the subject of a 12-month forward sale agreement at a price of $8.00 and Warburg Dillon Read will, subject to Australian Stock Exchange approval, issue 12-month warrants at the same price. The proceeds of the sale will be professionally managed.

Mr Lowy said he would continue as Executive Chairman and that the family remained fully committed to the future growth and success of the Westfield Group.

The sale should result in greater liquidity for Westfield Holdings shares, which are currently tightly-held, and provide an opportunity for new investors to establish a stake in the company.

The Deputy Chairman of Westfield Holdings, Professor Fred Hilmer, said the board had been informed of the family’s restructuring plan and was confident the prospects for the company remained extremely positive.