Wesfarmers requests trading halt ahead of announcement
Australian retail conglomerate Wesfarmers has requested a trading halt this morning pending an announcement on its planned $20 billion demerger of Coles.
The company has asked for the halt to remain in place until Tuesday unless the announcement is made beforehand.
Coles Group was bought by Wesfarmers in 2007 and although it accounts for about 60 per cent of the company’s employed capital, it generates only 34 per cent of its earnings.
Earlier this year, Wesfarmers announced its plans to spin off Coles and list it on the ASX.
In August the company said it would retain 15 per cent of Coles post-demerger and retain its 50 per cent ownership of flybuys.
Wesfarmers finalised the new Coles board recently with the appointment of three non-executive directors.