Court Approves $2.2B Sale of David Jones to South Africa’s Woolworths
By Vittorio Hernandez | July 18, 2014 11:36 AM EST
The Sydney Federal Court approved on Thursday the $2.2 billion sale of Australian department store David Jones to Woolworths Holdings of South Africa. The go signal came after shareholders of the second-largest department store in the country approved the sale on Monday.
Pedestrians walk past a David Jones department store in central Melbourne in this September 24, 2009 file photo. South African retailer Woolworths Holdings Ltd is set to buy Australia's second-largest department store David Jones for $2 billion, trumping an offer from Australian rival Myer Holdings Ltd with a hefty premium. To match story AUSTRALIA-DAVID-JONES/WOOLWORTHS REUTERS/Mick Tsikas/Files
The court rejected some of the concerns brought up by the Australian Securities and Investment Commission (ASIC), paving the way for the sale which would result in shareholders being paid about $3.75 each as part of the deal.
ASIC threatened to withhold a letter of consent for the sale and raised concern that Woolworths' bid for Country Road was a multimillion dollar inducement to rag trade Solomon Lew who got a 9.9 per cent stake in David Jones in June, which triggered fears that Lew would try to block the sale unless Woolworths would purchase his 11.8 per cent stake in Country Road at a premium price.
Friday, July 18, is the last to trade David Jones shares in the Australian stock market. Shareholders would receive $4 per share cash on Aug 1.
The 176-year-old department store, an icon in Australia's retail industry, has 38 stores across the country and has become a household name, but it decided to sell out after struggling for years against weak sales as online retailers capture a larger share of the market.
"This is a very exciting moment in the history of both Woolworths and David Joes and a major milestone in our strategy to become a leading Southern Hemisphere retailer," said Ian Moir, chief executive of Woolworths, which is not related at all to the Australian grocery giant with the same name.
To contact the editor, e-mail:
Join the Conversation
- iPhone 6 Release Down Under – Meet The First People To Have The Newest iPhones
- Masayoshi Son Is Japan’s Richest Man As Softbank Shares Surge Ahead Of Alibaba IPO; More Millionaires Among Alibaba Employees On The Way
- Ex-Male Strippers For Rent At $125/Hour To Act As ManServants
- Alibaba Hikes IPO Price Range To $66-$68 From $60-$66
- Google Nexus 6 Release Date on Q4 2014 Confirmed by T-Mobile Featuring Wi-Fi Calling
- Samsung Galaxy Note 4 vs. BlackBerry Passport — Specifications, Features, Release Date And Price Showdown
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- 3 Signs Apple iPhone 6 Could be in Short Supply Following its Sept 19 Release Date
- Australia Actively Rallying Support For International Coalition Against ISIS
- iOS 8 Jailbreak Release Update: Pangu Devs Will Outrace Evad3rs in Rollout of iPhone 6, iPad Unlocker
- Micromax Canvas A1 Vs Spice Dream Uno Vs Karbonn Sparkle V: A Choice On Which Android Is The Best