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.