Unibail made the right offer to Frank Lowy at the right time

As technological revolution sweeps through the industry, now is as good a time as any for Frank Lowy to sell.

Almost six decades after creating one of Australia’s most successful global companies, the 87-year-old Frank Lowy has sold the empire for $33 billion, marking Australia’s biggest ever takeover and raising the question of whether the shopping mall is dead.

The theory that new owner Christophe Cuvillier from Unibail-Rodamco is working under is the best mall in the best cities will thrive — and in the Westfield deal he has created as European and US behemoth.

The second-tier malls in second-tier towns are toast.

From where Frank Lowy sits, what is known is the world is undergoing a technological revolution and just where that goes no one really knows. It’s as good a time as any to sell. Ironically enough, the US assets are some of the very same bought by Westfield two years ago when it acquired Rodamco’s business in the country, building on its own operations.

The cash and scrip bid at $10.01 a share truly marks the end of an era in Australian business even though the family will own around 2.5 per cent of the new Unibail and have board representation.

The Lowy boys, Stephen and Peter, have spent over three decades with Westfield and were happy to pass the baton.

The family will share $750 million in cash plus 2.5 per cent of the acquiring company.

Stephen will stay with Westfield Solutions, which will be spun off to shareholders, and the digital start-up will be his attempt to keep the malls alive against the platform giants like Amazon.

Frank Lowy is a self-made entrepreneur who arguably is one of the greatest this country has seen (along with this paper’s publisher, Rupert Murdoch).

He not only has created an extraordinary global empire, but he has returned the spoils to Australia where he has contributed to the public debate through the Lowy Institute, been a standout philanthropist and the key figure behind soccer’s elevation in the country to a global level.

Perpetual, one of the largest non-family shareholders with 3 per cent, is also supportive of the transaction.

The right offer at the right time was how this deal came to be accepted by Frank Lowy, who like all business greats also knows when it is time to move on.

Goldman advised Unibail, with Rothschild advising Westfield with some support from UBS — which completed a trifecta yesterday with the Tatts-Tabcorp deal finally passing, and the $1.9bn Transurban rights issue (with Morgan Stanley and Macquarie).