The supervisory board of Unibail-Rodamco-Westfield has reiterated its commitment to a €9bn (£8.2bn) restructuring centred on a controversial equity raising, describing it as “the only credible response” to a challenging market.
URW announced its Reset plan in September, targeting €4bn in disposals and a €3.5bn equity raise among other measures to shore up the group’s balance sheet. Since then the group has confirmed a €620m sale of a Parisian office development.
However, the equity raise has been criticised by investors led by former chairman and chief executive of Unibail Léon Bressler, who have described it as “severely dilutive and unnecessary” and leaving the group “prisoner of its failed strategy that started with the acquisition of Westfield”.
URW’s supervisory board is encouraging shareholders to vote in favour of the plan and against resolutions proposed by the activist shareholders, who want the fund raising stopped, a different disposal strategy initiated and new members on the supervisory board.
Colin Dyer, chairman of the supervisory board, said: “Given these difficult times, the Reset plan is crucial to de-risking and securing the future continued stability of the business and position for long-term value creation.
“The activists’ proposal involves high risk for the company and its shareholders. Their plan is based exclusively on large and uncertain disposals, with an undetermined time horizon and at uncertain prices. They do not take into account the immediate need to strengthen our balance sheet.”
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