Information for Wesfarmers (ASX: WES) shareholders: WES demerger of COLES

On Thursday, 15 November 2018, Wesfarmers (ASX: WES) announced it received shareholder approval for the demerger of their Coles division.

Coles Group Limited will become a standalone publicly listed company on the ASX (ASX: COL). Wesfarmers will retain a minority interest of 15 per cent in Coles upon demerger, with the remaining 85 per cent of Coles shares distributed to Wesfarmers shareholders in proportion to their existing holdings in Wesfarmers.

Eligible Wesfarmers shareholders will be entitled to receive one Coles share for every one Wesfarmers share held on the Record Date, being 4:00pm (Perth time) on Thursday 22 November 2018. All existing Wesfarmers shares will be retained.

Indicative timetable

Event Indicative Date
Date of the First Court Hearing on which the Court ordered convening of the Scheme Meeting. Friday, 5 October 2018

Last time and date by which proxy forms for the Annual General Meeting, General Meeting and Scheme Meeting could be received by the Wesfarmers Share Registry.

Last time and date for determining eligibility to vote at the Annual General Meeting, General Meeting and Scheme Meeting.

4:00pm on Tuesday, 13 November 2018
Annual General Meeting 10:30am on Thursday, 15 November 2018
General Meeting The later of 1:30pm or 30 minutes after the conclusion of the Annual General Meeting on Thursday, 15 November 2018
Scheme Meeting The later of 1:45pm or the conclusion of the General Meeting on Thursday, 15 November 2018
Court hearing for approval of the Scheme (the Second Court Hearing). Monday, 19 November 2018
Last time and date by which Sale Facility Forms must be received by Wesfarmers Share Registry (for Small Shareholders). 2:00pm on Tuesday, 20 November 2018
Effective Date and last date Wesfarmers Shares trade on the ASX cum-entitlements under the Demerger. Tuesday, 20 November 2018
ASX listing of Coles. Coles Shares commence trading on the ASX on a deferred settlement basis. Wesfarmers Shares trade on the ASX on an ex-Demerger entitlements basis. Wednesday, 21 November 2018
Time and date for determining entitlement to Coles Shares under the Demerger (the Record Date). 4:00pm on Thursday, 22 November 2018
Implementation Date and transfer of Coles Shares to Eligible Shareholders (other than Selling Shareholders) and Sale Agent. Wednesday, 28 November 2018
Normal trading of Coles Shares on the ASX commences. Thursday, 29 November 2018
Dispatch of holding statements to Eligible Shareholders (other than Selling Shareholders). Friday, 30 November 2018
Completion of sale of Coles Shares under Sale Facility Wednesday, 19 December 2018
Dispatch of payment to Ineligible Overseas Shareholders, Selling Shareholders and ShareGift. Wednesday, 2 January 2019

Please note: Times indicated above are Australian Eastern Daylight Savings Time (AEDT). All dates and times following the date of the General Meeting and Scheme Meeting are indicative only and, among other things, are subject to all necessary approvals from the Court and other regulatory authorities. Any changes to the timetable (which may include an earlier or later date for the Second Court Hearing) will be announced through the ASX and will be notified on Wesfarmers’ website at www.wesfarmers.com.au.

Impact to CommSec Adviser Services Investment Lending customers

Margin Lending clients holding WES shares may notice a change in their loan collateral as a result of a potential price adjustment following the demerger which may affect your loan gearing ratios. Please ensure you have sufficient collateral on your loan and monitor your account during the demerger period.

At this time, the Loan to Value Ratio (LVR) details on the COL CDIs^ listed on the ASX are not available and we will update announcements as it becomes available. Once the securities are allocated to your loan, they will automatically receive the assigned LVR.

If you would like to discuss how this may impact your Investment Loan, please call us on 1800 252 351 option 3 (8:30am to 6pm, Monday to Friday, Sydney time) or email us at InvestmentLending@cba.com.au.

Important information for Exchange Traded Options (ETO) customers

Please be aware of adjustments to collateral and Options series for WES ETO following the demerger. If you would like to discuss this further, please contact us.

Further information

For further information regarding the WES demerger, shareholders can visit www.wesfarmers.com.au or contact the WES Shareholder Information Line on 1300 558 062 or +61 3 9415 4631 if calling from overseas (8:30am to 8:00pm, Monday to Friday, Sydney time).

This content is for information purposes only and should not be considered as a recommendation to buy, sell or hold WES and/or COL. We accept no responsibility, or liability for any inaccuracies contained in this notice.

^CDI – CHESS Depository Interests or CDIs are a type of security which is used on the Australian Stock Exchange (ASX) to allow international companies to trade on the local market.

Published: 20 November 2018