This morning Wesfarmers Limited [ASX:WES] requested its shares be placed in a trading halt, pending an announcement related to the demerger of its Coles supermarket chain.
The decision to demerge Coles as a separate ASX-listed company was announced in March this year.
Wesfarmers has requested the trading halt stay in place until Tuesday 9 October, unless an announcement is made prior.
Why are Wesfarmers demerging from Coles?
Coles Group is Wesfarmers’ largest sub-division, responsible for 34% of its annual earnings, as reported by The Sydney Morning Herald.
Separating the two will allow Wesfarmers to focus on growing its other divisions, including Kmart, Target, Bunnings and Officeworks.
The demerger is expected to position both companies’ portfolios for success over the next decade, creating a new top 30 ASX-listed company.
Wesfarmers will retain minority ownership interest of 15% in Coles and 50% in Flybuys.
Keep your eye out for the update regarding further details of the demerger.
For Money Morning
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