Wesfarmers’ $130m profit from Coles stake

Wesfarmers expects to make a $130 million pre-tax profit as it prepares to sell down another stake in Coles Group to shore up its balance sheet  

Wesfarmers, which owns Bunnings, Kmart, Officeworks and other businesses, told the market late on Monday of the impending sale of a 5.2 per cent stake in the supermarket, worth $1.06 billion.

It’s the second time in two months Wesfarmers has sold down its stake in Coles.

It offloaded a 4.9 per cent parcel worth $1.1 billion in February. 

The latest shares will be sold at $15.39 each – an 8.5 per cent discount to Monday’s traded price of $16.82 – and settlement is expected on April 2.

The conglomerate will retain a 4.9 per cent interest in Coles and will retain its remaining shares for 60 days from completion of the sale.

The coronavirus pandemic and its economic fallout prompted Wesfarmers to shore up its balance sheet.

Wesfarmers retained a 15 per cent stake in the company when it spun Coles off as a separate entity as part of a $20 billion demerger in November 2018.

AAP

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