Wesfarmers plans to spin off Coles into a separate company
Retail conglomerate Wesfarmers says it plans to spin Coles off into a separate company.
The company said on Friday morning it intended to demerge the supermarket chain, its largest division, to create a new top-30 company listed on the Australian Securities Exchange.
Wesfarmers, which has a market value of $46.7 billion, said the move would allow it to focus on growing its other divisions, which include Bunnings, Kmart, Target and Officeworks, and look for opportunities to buy new businesses.
The Coles Group, bought by Wesfarmers in 2007, accounts for about 60 per cent of the conglomerate’s tied-up capital, but generates only 34 per cent of its earnings.
Wesfarmers will retain up to 20 per cent of shares in the new Coles company to support “strategic alignment”, including in digital, data analytics and the flybuys loyalty program. Sydney Monring Herald – Read more…