Archived News
In August 2021 Finfeed changed from a website that covered ASX listed news to a website
that covered a select range of ASX
listed small cap Biotech stocks that we are personally
invested in: find out more.
The old Finfeed website, and all of the old articles are kept here for record keeping purposes.
VISIT NEW SITEWesfarmers sells 5.2% of Coles Group
1 minute read
Wesfarmers (ASX:WES) announced on Tuesday morning that trades had been executed for the sale of 5.2 per cent of the issued capital in Coles Group Limited (ASX:COL) for total pre-tax proceeds of $1,060 million.
Management had flagged the sale on Monday in response to a trigger built into the terms of Coles demerger from the Wesfarmers Group.
Specifically, Wesfarmers said, ‘’As a result of the Group’s interest falling below 10 per cent, the Relationship Deed agreed with Coles at the time of the demerger will terminate and Wesfarmers will no longer have the right to nominate a director to the Coles Board.
‘’As part of the transaction, Wesfarmers has also agreed to retain its remaining shares in Coles for at least 60 days from completion of the sale, subject to customary exceptions.’’
Wesfarmers managing director Rob Scott said that the significant and unprecedented events of the past few weeks have highlighted the importance of balance sheet flexibility to support the group in a range of economic circumstances.
He said he was pleased with the performance of Coles since the demerger and the very important role that Coles is providing, and will continue to provide, to Australian households during the COVID-19 crisis.
Wesfarmers reaps $130 million pre-tax profit
But at the end of the day, this was all about maximising shareholder returns for Wesfarmers as the divestment crystallises an attractive return for shareholders since the demerger and further enhances the group’s strong balance sheet position.
The sale will proceed at $15.39 per share in Coles with settlement expected on April to 2020.
This represents a significant discount to yesterday’s closing price of $16.82.
Wesfarmers expects to recognise a pre-tax profit on sale of approximately $130 million.
Following the sale, Wesfarmers retains a 4.9 per cent interest in Coles and has agreed to retain its remaining shares in Coles for 60 days from completion of the sale, subject to customary exceptions.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain.