Wesfarmers Ltd (ASX: WES) shareholders have voted their approval for the demerger of Coles shares.
Each Wesfarmers shareholder will receive one Coles share for every one Wesfarmers share they own.
The Coles demerger
Wesfarmers expects that Coles shares will begin trading on the ASX on a deferred settlement basis at 11 AM on 21 November 2018.
The Wesfarmers Chairman Michael Chaney said:
“The endorsement of our shareholders means we can proceed to implement the significant re-positioning of the Group’s portfolio, one which we believe sets up both Wesfarmers and Coles for future success.”
What has Coles announced so far?
Coles and Wesfarmers plan to pay dividends that would equal what Wesfarmers would have paid as a joint entity.
To create the next stage of growth Coles plans to roll-out a large number of ‘Coles Local’ stores that are located in higher-density areas, they will be smaller than a full-size supermarket and carry fewer products, but shoppers will still be able to do a weekly shop there.
The Coles Local stores will focus on Australian fresh food and already-made meals for people who are time-poor.
Coles has also announced it is investing $600 million to $800 million in two new automated distribution centres.
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