Woolworths on Monday said shareholders of David Jones had voted “overwhelmingly” in favour of the JSE-listed food and clothing retailer’s proposed acquisition of Australia’s department store.
On Monday, it emerged that David Jones had applied to the Federal Court of Australia for the permission of the scheme at a hearing scheduled for Thursday, 17 July 2014. If approved, the scheme will become effective on Friday, 18 July 2014.
Woolworths’ acquisition is likely to come into operation on or about Friday, 1 August 2014 after which David Jones will become a wholly-owned subsidiary of Woolworths.
Early last month, David Jones had put off the shareholder vote that was supposed to be held at the end of June this year relating to its proposed $2 billion takeover bid by Woolworths.[eap_ad_2]
At the time, Woolworths said the meeting was postponed until mid-July after Australian billionaire, Solomon Lew, bought 9.89 percent stake in David Jones on Wednesday this week. Woolworths did not give an update on the matter relating to Lew.
Shareholders of Woolworths have approved the firm’s planned acquisition of David Jones last month.
This emerged at the company’s general meeting where the majority of shareholders also approved a proposal relating to a rights offer for the company.
Earlier this year, Woolworths said it had decided to buy David Jones for $2 billion in cash and new debt. Woolworths made this acquisition as 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.” (VENTURES AFRICA)[eap_ad_3]