Demerger of Coles (2024)

FAQs

What is the cost base for Coles shares after demerger? ›

The cost base in each Coles share received will equal the market value of the Coles shares on the demerger implementation date. A reasonable estimation of the market value of each Coles share on the demerger implementation date is the 5 day VWAP of $12.8459.

What is the Demerger? The Demerger is the separation of Wesfarmers' Coles division to create an independent ASX-listed retail company with leading market positions in Australian supermarkets, liquor and convenience.

Wesfarmers has finally sold out of Coles almost five years after the Perth-headquartered conglomerate spun off the supermarket chain, selling a $688 million stake in an after-market trade via Barrenjoey.

The company opened its first day of trading with a share price of $12.49.

If it's a split off, shareholders will get the opportunity to exchange their ParentCo shares for NewCo shares. If it's a spin off, shares in the newly created company are distributed to existing ParentCo shareholders via a dividend.

Ownership in the New Entity: In most demergers, existing shareholders of the parent company are given shares in the new, separate company. The number of shares they receive is usually proportional to their existing ownership in the parent company.

Wesfarmers Limited is an Australian conglomerate, headquartered in Perth, Western Australia. It has interests predominantly in Australia and New Zealand, operating in retail, chemical, fertiliser, industrial and safety products.

Wesfarmers has a market cap or net worth of 74.04 billion as of April 22, 2024.

Who owns Wesfarmers now? ›

Wesfarmers is one of Australia's largest private sector employers with approximately 107,000 team members and is owned by more than 487,000 shareholders. Wesfarmers is a company limited by shares that is incorporated and domiciled in Australia.

Coles Group

Coles Supermarkets / Parent organization

Coles Group Ltd's market capitalization is 21.5B AUD. COL stock price is 16.05 AUD. COL stock price (16.05 AUD) is 24% less than its Intrinsic Value (21.21 AUD). The DCF Value of COL stock (13.91 AUD) is 13% less than its price (16.05 AUD).

Coles Group Ltd.'s analyst rating consensus is a Hold. This is based on the ratings of 10 Wall Streets Analysts.

Wesfarmers acquired Coles Group Ltd for $19.3 billion, in Australia's biggest corporate takeover. Persevering through the withdrawal of its private equity partners and the looming global financial crisis, Wesfarmers' offer was accepted by Coles' board on 1 July and approved by Coles shareholders in November.

(2C) The cost of acquisition of the shares in the resulting company shall be the amount which bears to the cost of acquisition of shares held by the assessee in the demerged company the same proportion as the net book value of the assets transferred in a demerger bears to the net worth of the demerged company ...

How do I determine the value of the shares of a publicly traded stock I received in a merger? The initial cost basis would be the stock's price at the time you obtained the shares. So if you had ten shares at $10 per share, your cost basis is $100. If you sell the 10 shares at $11 per share, your capital gain is $10.

A stock split does not change your total cost basis, but it does change your cost basis per share. To calculate your new cost basis per share, you need to divide your original cost basis by the number of new shares you receive.

To the extent that rollover does not apply, the acquisition cost of investors' new Wesfarmers ordinary shares is $41.4819 per share and of Wesfarmers partially protected shares is $41.9541 per share. The disposal date of the Coles shares is 23 November 2007.