Woolworths to acquire remaining shares in Country Road
Woolworths already holds 88% of Country Road shares and has offered A$17 per share for the rest of the company. It is its second takeover attempt of Country Road. The total cash consideration for the remaining shares is A$213m.
Woolworths CE Ian Moir said: "In light of the proposed acquisition of David Jones‚ this is a common sense and timely opportunity to seek to reach full ownership of Country Road.
"If successful‚ the offer will allow Woolworths to delist Country Road‚ allowing Woolworths to simplify its group structure and fully integrate the businesses."
Woolworths said Country Road was one of Australia's largest specialty fashion and homeware retailers with a leading position in the mid to upper tier of the specialty apparel market. It operated more than 480 stores in the southern hemisphere‚ the company said.
Country Road represented about 18% of Woolworths' turnover and contributed about 14% of profit before tax in 2013.