News: Country Road receives buyout offer, page-2

Woolworths offers to buy Lew out of Country Road

By business reporter Michael Janda
Updated 25 minutes ago

South African retailer Woolworths is making a $213 million bid to buy Solomon Lew out of Country Road.
Woolworths is currently making a $2.15 billion takeover bid for upmarket department store David Jones, a bid that has recently been threatened by Solomon Lew's moves to build up a near 10 per cent stake in DJs.

That stake has been viewed as an attempt to potential spoil Woolworths's David Jones takeover, and force its hand into paying a premium to buy out Solomon Lew from his nearly 12 per cent stake in Country Road.
Mr Lew's Country Road stake has thus far prevented Woolworths, which owns 87.88 per cent of the fashion label, from getting the 90 per cent-plus majority it needs to take the company private.

Woolworths is offering $17 in cash for each Country Road share, which is a 21.4 per cent premium to its closing price of $14 yesterday afternoon.

It is an even more substantial premium to Country Road's historical share price, which had not traded above $4 until November last year.
Move boosts Country Road, DJs shares

Country Road's shares were up 7.4 per cent to $15.03 by 11:15am (AEST), and David Jones shares jumped more than 4 per cent to $3.945 - closer to Woolworths's $4 per share offer price as investors were more reassured that the takeover would go ahead.

Woolworths says it will fund the $213 million Country Road buyout through an Australian debt issue.
The South African retailer's chief executive Ian Moir says the move makes sense given Woolworths's bid for David Jones.

"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," he noted in a statement.
"If successful, the offer will allow WHL (Woolworths Holdings Limited) to delist Country Road, allowing WHL to simplify its group structure and fully integrate the businesses."
The Woolworths offer for Country Road is conditional on its bid for David Jones being successful, and it receiving FIRB approval for the transaction

http://www.abc.net.au/news/2014-06-...-launches-bid-to-buy-out-country-road/5545968