Wesfarmers (ASX:WES) has announced the demerger of Coles is expected to be completed in November 2018 subject to shareholder and other approvals.
The Australian conglomerate plans to retain a minority ownership interest of 15 per cent in Coles to support strategic alignment between the two companies.
Wesfarmers will also retain its existing ownership of 50 per cent of flybys.
The company says it’s committed to demerging Coles with a strong balance sheet, with Coles expected to have net debt of about $2 billion, combined with a favorable lease commitment profile.
Meantime, Wesfarmers has announced the appointment of James Graham AM as Chairman of Coles on completion of the demerger.
Shares in Wesfarmers (ASX:WES) have closed 0.48 per cent higher at $50.00 on Friday