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Сoles’ shareholders have approved sale of the company for $18,2 billion

7 November 2007

Shareholders of Australian retailer Coles Group Ltd. have voted for purchase of the company by competitor Wesfarmers Ltd for 19,6 billion Australian dollars (18,2 billion dollars).
Holders of 99,25 % of Coles’ securities have voted for the transaction. Nevertheless, merge should be still approved by authorities of Australia. Hearing of this case is planned for November, 9th, 2007.
The arrangement on merge has been reached by the companies on November, 2nd 2007. Wesfarmers has offered to pay 4 Australian dollars (2,4 dollars) and 0,2843 Wesfarmers’ share for each Coles Group’s share. Thus, the total amount of the transaction will make 21,9 billion Australian dollars (18,6 billion dollars). Coles Group’s board of directors unanimously recommended shareholders to accept this offer.
Wesfarmers is the largest in Australian retailer. The company has lead IPO in 1984. Since then its capitalization has grown from 400 million dollars up to 7 billion dollars. Westfarmers’ activity is concentrated in Australia and New Zealand.
Coles takes the second place among Australian retailers after Westfarmers. The company has a network, consisting of 740 shops, in Australia. Its staff makes 92 thousand people.

 

 




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