Westfield Holdings shareholders yesterday voted overwhelmingly to approve a $27 billion merger between the company and its two listed unit trusts.
And Frank Lowy, executive chairman and founder, declared that the group would always be an Australian company operating globally, but said a dual listing in the US was a possibility in the distant future.
Mr Lowy was addressing 300 investors in Westfield Holdings and its listed vehicles, at an extraordinary meeting to approve the merger.
When the new Westfield Property Group lists on July 5 it will be the biggest listed shopping centre property trust in the world, with assets of more than $34 billion and a market value, based on yesterday's closing prices of the three groups, of about $27 billion.
The successful merger vote will transform Westfield, which started as a corner store in Blacktown 44 years ago, into a global empire with shopping centres in Australia, New Zealand, the US and Britain.
But when asked if Westfield would follow the same path as News Corp and list overseas, Mr Lowy was adamant that the headquarters would always be 100 William Street, Sydney.
"I can say categorically that we have no plans to list on the New York Stock Exchange," he said. "I can't say what will be the situation in 10 years, but we believe Australia has the capacity to support our growth plans.
"A dual listing is a possibility because in the interest of shareholders we need to be where the best opportunities are. But the conditions would need to be substantially different for Westfield to make any move overseas (to list)."
Mr Lowy said he was proud of the group's new merged status, but also nostalgic.
"Forty-four years ago, my partner, the late John Saunders, and I had big dreams - there is no doubt about that - but neither of us could have predicted such a future.
"But we do not dwell on the past at Westfield. We've always moved with the times and tried to make sure we are in a good position to take advantage of the next wave of opportunities. This is really what the merger proposal is all about."
The forecast distribution for the group for the year to June 2005 is $1.03 per security. This is forecast to increase to $1.10 for the year to June 2006, a rise of 7 per cent.
While the Lowy family's holding will be reduced from 28 per cent to about 12 per cent as a result of the merger, Mr Lowy will remain chairman, with sons Peter and Steven retaining their roles as joint managing directors.
Mr Lowy said no decision had been made on the composition of the new board to run the merged entity. Goldman Sachs JBWere estimated a share price of close to $15 for the new entity, and expects the consolidation of all three balance sheets to result in a lower cost of capital and improved returns for shareholders and unit holders.
Westfield Holdings shares lost 28¢ to $15.32 yesterday.