Australia's Coles says ownership options review to take 2-6 mths |
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Fri, 23 Feb 2007 04:19
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SYDNEY (XFN-ASIA) - Australia's second largest supermarket operator, Coles Group Ltd said said a review of ownership options for the company and its businesses will take 3-6 months.The retailer previously said it planned to review its options after its advisors, Carnegie Wylie & Co and Deutsche Bank received a number of informal proposals that involved potential offers for the company.The review now effectively indicates that the group will consider a sale.However Coles chairman Rick Allert told a briefing that the board will not accept an offer unless it is substantially in excess of an indicative offer of 15.25 aud a share, proposed last year by a Kohlberg Kravis Roberts-led consortium.KKR's offer, which valued Coles at 18.2 bln aud, was rejected without being put to shareholders.Allert wouldn't reveal the names of any of those parties that had made informal approaches to the company, but confirmed there is no formal offer on the table.'There have been informal approaches to our advisers and we now think it is time to formalise those offers,' Allert said, adding that one of the options is to keep the group as it is.'The board is taking this moment to set up a formalised process through our advisers to determine whether there would be better value for our shareholders from a 100 per cent sale, or a de-merger, or a different structure, or continuing as we are,' Allert said.Chief executive John Fletcher said the company does not intend halting its five-year transformation strategy of bringing most of its brands under the Coles banner while the ownership review is undertaken.Coles rose sharply on the news of the review, with the stock up 1.19 aud or 8.2 pct at 15.69 at 1.45 pm, after touching a high of 15.95 earlier.(1 usd = 1.27 aud)bruce.hextall@xxfn.com
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