Wesfarmers (ASX:WES) to sell 5.2% of issued capital in Coles

Company News

by Rachael Jones

Wesfarmers (ASX:WES) today announced that trades have been executed for the sale of 5.2 per cent of the issued capital in Coles Group (ASX:COL) for $1.06 billion.

The sale will proceed at $15.39 per share with settlement expected on 2 April 2020.

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.

As a result of Wesfarmers' interest falling below 10 per cent, the Relationship Deed agreed between Coles and Wesfarmers at the time of the demerger will terminate and Wesfarmers will no longer have the right to nominate a director to the Coles Board.

Shares in Wesfarmers (ASX:WES) are trading 3.2 per cent higher at $37.04.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.