On Thursday 15 November 2018, Wesfarmers shareholders approved the demerger of Coles Group Limited from Wesfarmers, and Court approval for the scheme of arrangement to implement the demerger was received on Monday 19 November 2018.
On Wednesday 21 November, Coles Group Limited shares commenced trading on the ASX on a deferred settlement basis and Wesfarmers shares commenced trading on an ex-demerger entitlements basis.
Wesfarmers shareholders will have seen a fall in the ASX price of Wesfarmers shares on this day to reflect that:
- Wesfarmers shares are being valued excluding Coles Group Limited (other than Wesfarmers’ 15% retained stake) and:
- for every Wesfarmers share they held on 22 November 2018, eligible Wesfarmers shareholders receive one Coles share (in addition to retaining their Wesfarmers shares).
On Wednesday 28 November, the demerger of Coles was completed and the transfer of Coles shares to eligible shareholders occurred. Normal trading of Coles shares commenced on Thursday 29 November and despatch of holding statements to eligible shareholders occurred on Friday 30 November.
The general Australian taxations implications of the demerger for Wesfarmers shareholders are set out in Section 5 of the Scheme Booklet. This includes information on how shareholders will need to apportion the cost base of their Wesfarmers shares held just before the demerger between their Wesfarmers shares and Coles shares held just after the demerger (for those shareholders who held Post—CGT Wesfarmers shares). The cost base apportionment will be based on the market values of the Wesfarmers shares and corresponding Coles shares just after the demerger. A class ruling from the Australian Taxation Office on the precise apportionment percentage for shareholder cost base is expected in late December, and will provide additional guidance on our website at that time.
The information here will continue to be updated. If you have any additional questions please call the Wesfarmers shareholder information line.
Australian shareholders: 1300 558 062
Overseas shareholders: +61 3 9415 4631
For information relating to Coles Group, please visit www.colesgroup.com.au