Westfield owner rejects €3.5bn rights issue after shareholder backlash
Shareholders in the owner of Westfield shopping centres have voted against a controversial €3.5bn (£3.1bn) rights issue, the company said today.
Unibail-Rodamco-Westfield said its proposals for a capital increase had failed to win the required two-thirds majority following a remote vote that closed yesterday.
The Paris-headquartered company faced fierce opposition over the plans from a consortium led by French billionaire Xavier Niel and former chief executive Leon Bressler.
Unibail had said the rights issue was necessary to help shore up its balance sheet after the outbreak of Covid-19 forced the group to shutter shopping centres during lockdowns.
But the consortium argued that the company’s finances were secure up until 2023 and the rights issue would destroy its share value. They also blamed Unibail’s large debt pile on its 2017 acquisition of Westfield.
Shareholders today also passed three board appointments put forward by the consortium. Niel, Bressler and Spanish businesswoman Susana Gallardo all approved as members of the company’s supervisory board.
Chief executive Christophe Cuvillier said the shopping centre group and its industry was facing a “period of uncertainty and disruption”.
He said a potential breakthrough in a Covid-19 vaccine could have a significant positive impact on retailers, but warned it did not remove the need to reduce Unibail’s debt pile.
The Westfield owner has proposed billions of euros in European asset sales, but continues to face a conflict with the rebel consortium, which has called for the company to sell off its US real estate and focus on Europe.
Unibail owns and operates 89 shopping centres across Europe and the US, with a total portfolio valued at €58.3bn.