Home > Industry > Finance > Wesfarmers To Demerge Coles

Wesfarmers To Demerge Coles

Retail conglomerate Wesfarmers will demerge Coles in a plan to create a new top 30 company on the ASX which will have “leading positions in grocery, liquor and convenience”.

The company is implementing the demerger so it can focus on growing its other divisions including Bunnings, Target, Kmart and Officeworks.

Wesfarmers explains if the demerger goes ahead shareholders will receive new shares in Coles proportional to their existing shareholdings. The distribution of Coles shares expected to qualify for demerger tax relief which will be subject to ATO ruling.

In its presentation, Wesfarmers tell shareholders they have the opportunity to vote on the demerger and if its approved, will be completed by FY19.

Wesfarmers will retain a minority ownership interest up to 20 per cent in Coles and a substantial ownership stake in flybuys.

Currently, Coles accounts for 60 per cent for the Wesfarmer group’s capital employed and 34 per cent of group divisional earnings.

Last month it released its half year results with a massive 86.6 per cent drop in profit to $212m with its EBITDA dropping 42.5 per cent to $1.76bn.

Wesfarmers claims these results are a reflection of difficult trading conditions, including a $306m writedown of Target and $931m writedown of Homebase/Bunnings UK and Ireland.



You may also like
Wesfarmers Chairman Hits Out As Trump Tariffs Restored After Appeal
Supermarkets Hit Rock Bottom as Australia’s Most Distrusted Industry, With Bunnings Trust Slipping
Super Retail Group Warns of Margin Squeeze and Cost Blowouts in Trading Update
Businesses Slammed for Inflated Card Fees as ACCC Cracks Down
Australian Retail Shares Crash Dollar Dive A Problem For Distributors

Popular Posts

IFA 2025 Introduces Enhanced Travel and Accommodation Services for Industry Visitors
Latest News
/
/
Slyp Launches AI Loyalty Tools to Tackle Customer Engagement Fatigue
Latest News
/
/
Disney and Universal Sue Midjourney for AI Copyright Infringement in Major Hollywood Legal Challenge
Latest News
/
/
Samsung Galaxy Z Flip 7 & Flip 7 FE Leak Ahead of Launch
Latest News
/
/
LG Made In The USA Strategy Could Push Up Prices In OZ
Latest News
/
/

Digital Magazines

Recent Post

IFA 2025 Introduces Enhanced Travel and Accommodation Services for Industry Visitors
Latest News
/
//
Comments are Off
IFA Berlin has announced comprehensive travel and accommodation packages for trade visitors, exhibitors, and media attending the world’s largest home...
Read More