Woolworths, JSE-listed food and clothing retailer, on Thursday said the Federal Court of Australia had approved the arrangement between David Jones, the Australian department store, and its shareholders in terms of which Woolworths would acquire David Jones for $2 billion in cash and new debt.
“David Jones intends to lodge a copy of the orders of the Court approving the Scheme with the Australian Securities and Investment Commission on Friday, 18 July 2014, at which point the scheme will become effective,” Woolworths said.
This will then meet the final outstanding conditions to the transaction. David Jones will request that its shares be suspended from the Australian Securities Exchange on Friday, 18 July 2014 (tomorrow).
Woolworths’s bid to acquire David Jones is part of its plan to expand its global presence. This expansion is aimed at changing the firm into a leading “southern hemisphere retailer” with enough capacity to contest well with international apparel retailers.”
Meanwhile, in the 52 weeks to end 29 June this year, Woolworths’ sales gained 14.4 percent from 12.7 percent in the previous comparable reporting period.
South Africa’s clothing sales surged 10.6 percent while food sales soared 14.8 percent during the period under review. Retail space, including stores in the rest
of Africa, lifted 8.2 percent while sales in Australia and New Zealand, including the Witchery Group, soared 20.3 percent, in Australian dollar terms, Woolworths said. (VENTURES AFRICA)