Court tick for vote on Coles spin- off

SHAREHOLDERS in retail giant Wesfarmers will vote next month on whether the $ 20 billion demerger of supermarket chain Coles will proceed.

The vote will take place at the conglomerate’s general meeting on November 15, with the anticipation Coles shares will be listed on the ASX on November 21, subject to regulatory approval.

Wesfarmers announced in March its plans to spin off Coles Group and list it on the ASX, while in August it said it would retain 15 per cent postseparation.

The Supreme Court of Western Australia gave the nod yesterday for the company to hold a shareholder meeting to vote on the planned spin- off.

The demerger will be effected by a scheme of arrangement, under which eligible shareholders will receive one Coles share for every Wesfarmers share held. Wesfarmers shareholders will retain their shares in the company and its dividend policy will remain unchanged.

The plan would allow the Perth- based conglomerate to focus on generating cash for its leading stores, managing director Rob Scott said.

“After the demerger, Wesfarmers will have a portfolio of cash- generative businesses with strong returns on capital, good momentum and leading positions in their respective markets,” he said. “Maintaining a strategic stake in Coles provides an important connection with Wesfarmers to reinforce opportunities to collaborate in the data, digital and loyalty areas.”