Woolworths, the JSE-listed food and clothing retailer, on Friday said the Australian department store, David Jones, would apply for the termination of the listing of its shares on the Australian Securities Exchange (ASX).
It said by the close of trading on Monday next week David Jones would be removed from the official list of the ASX shares.
This is part of the implementation of a scheme of arrangement between David Jones and Vela Investments, a subsidiary of Woolworths.
“The scheme consideration of A$4.00 for each David Jones share held on the scheme record…will be paid to the David Jones shareholders today (Friday 01 August),” Woolworths said.
A couple of weeks ago, Woolworths said the Federal Court of Australia had approved the arrangement between David Jones 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 at the time.
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.”
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. (VENTURES AFRICA)