Wesfarmers says Officeworks will not make an IPO

Company News

by Jessica Amir

Wesfarmers Limited (ASX:WES) says an Initial Public Offering (IPO) of its Officeworks business would not be in the best interests of its shareholders, at this point in time. 

The Australian conglomerate which also owns Coles, Bi-Lo, Target and Kmart had been undertaking a strategic review of Officeworks, with the potential of an Initial Public Offering of the office supplies retailer.

The company says since it purchased Officeworks in 2007 it has more than doubled its earnings.

Officeworks has also boosted its return on capital to 13.9% in the first half of the 2017 financial year.

Wesfarmers says Officeworks is positioned well for future growth and it also has a strong, competitive market position.

Shares in Wesfarmers Limited (ASX:WES) opened 1.12% lower to $43.40.
 

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