- Wesfarmers (WES) has agreed to sell nearly 5 per cent of its interest in Coles Group (COL), for around $1.1 billion
- The company will keep around 10 per cent of its remaining interest and will have the right to nominate a director for the Coles Board
- Wesfarmers Managing Director Rob Scott believes the sale shows its continued confidence in Coles as a future stand-alone listed company
- Further details on the sale will be announced once it is known
- On market close Wesfarmers is down slightly, trading at $45.25 per share
Wesfarmers (WES) has agreed to sell 4.9 per cent of its interest in Coles Group (COL) for around $1.1 billion.
Following the sale, Wesfarmers will keep its minority interest of 10.1 per cent in Coles and will have a right to nominate a director on the Coles Board.
The company aims to keep the ongoing relationship with Coles, since the demerger in 2018.
Wesfarmers Managing Director Rob Scott said the partial sale of the Coles shareholding would create a strong return for shareholders.
“We believe this level of divestment is in the best interests of our shareholders and consistent with our objectives at the time of the demerger, which included demonstrating continued confidence in Coles’ future as a stand-alone listed company,” Rob told the market.
“We have been pleased with the performance of Coles as an independently listed entity and believe it is an appropriate time to realise value for our shareholders while retaining a meaningful interest and ongoing connection with Coles, including representation on its Board and through our flybuys joint venture,” he added.
Further details on the sale will be announced once it is known.
On market close, Wesfarmers is down slightly, trading at $45.25 per share.