Woolies to sell Masters confirmed, page-79

I view this as positive overall. Getting rid of this lossmaker sooner rather than later (they should have done it a while ago but I only bought in recently). Good overview eskie, of why the Masters format is not working currently, I was wondering why it was incurring such big losses, the main points being larger capital outlays, higher rents and higher staffing requirements compared to Bunnings, as well as possibly inferior locations and paying too much for those locations.

Obviously they will need to weigh up all permutations and combinations for the exit process. Weighing up all offers from prospective buyers should allow them to calculate the exit process which will result in the least amount of loss. After this is done however, with a reduced net asset position (after selling for less than capitalised amounts), and increased profits, the new return on equity should be quite solid, possibly getting back over 20% within 18 months. They can renew their focus on their core businesses and possibly make inroads into improving Big W. I hope their new CEO (once chosen) does a good job. My average on this one is around $23.30.