G41 Food Retailing

Lew’s big win: DJs deal to go ahead

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 &20 : 18-Jul-14

Federal Court of Australia judge Kathleen Farrell on 17 July 2014 approved the takeover by South Africa’s Woolworths of department stores chain David Jones (DJs). Solomon Lew, a DJs stockholder with 9.9%, has struck a side deal with Woolworths, to accept the DJs bid if the suitor also buys his 11.8% in retailer Country Road to move to full ownership. Lew will gain $A212m. John Halley SC, on behalf of the Australian Securities & Investments Commission, told Farrell it was opposed to the collateral benefit aspect of the agreement, but would not block the takeover

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL

South Africans wrap up DJs

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Original article by Blair Speedy
The Australian – Page: 21-22 : 15-Jul-14

Gordon Cairns, chair of Australian-listed department stores chain David Jones (DJs), has announced that the takeover bid worth $A4 a share by South Africa’s Woolworths has been accepted. Support among investors was strong, with 50% of stockholders required to vote "yes" and the actual result being 89.6%. In terms of voted scrip, the 75% needed compares with an outcome of 96.8%. Entrepreneur Solomon Lew will sell his 9.9% holding into the scheme of arrangement and has abstained from the vote, meaning the deal can be ratified by the Federal Court on 17 July 2014. Lew will now also gain $A209m from the suitor for his interest of 11.8% in Country Road

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WITCHERY FASHIONS PTY LTD, MIMCO DESIGNS PTY LTD, ASX LIMITED – ASX ASX

Coles to play banks at own game

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Original article by Jared Lynch
The Australian Financial Review – Page: 19 : 15-Jul-14

Coles will expand its product offerings in the financial services sector, with the introduction of personal loans. The grocery retailer expects to receive regulatory approval by the end of 2014, but Coles Finance director Rob Scott has declined to comment on the possibility that Coles could also seek a banking licence. The new products will be offered in partnership with GE Capital

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GE CAPITAL AUSTRALIA, TESCO PLC, J SAINSBURY PLC, MARKS AND SPENCER PLC, MASTERCARD AUSTRALIA LIMITED, VISA INTERNATIONAL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

David Jones’ investors to vote

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Original article by Blair Speedy
The Australian – Page: 19 : 14-Jul-14

Stockholders in Australian-listed department stores chain David Jones (DJs) will vote on 14 July 2014 on the takeover bid worth $A4 a share by South African retailer Woolworths. It needs 50% of investors to approve it and 75% of stocks to be voted in favour, and may need to rely on entrepreneur Solomon Lew. He has built a stake of at least 9.9% in DJs, and has extracted a promise from Woolworths to also buy his 11.8% holding in Country Road. Woolworths has 88% of that entity. Lew has made no comment on which way he will vote, while the Australian Securities & Investments Commission may challenge the Country Road side deal in the Federal Court

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, OWNERSHIP MATTERS PTY LTD

After conman, Myer hires well-known exec

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Original article by Blair Speedy
The Australian – Page: 21 : 11-Jul-14

Department stores chain Myer has appointed a new executive. Gary Williams has wide experience and is currently with the Westfield property group. He will take up the position in August 2014. Myer CEO Bernie Brookes said that Williams was not directly replacing Andrew Flanagan, who was sacked on his first day after the discovery that his resume was fraudulent. Brookes said that Williams will be involved with strategic development, while Flanagan’s role was to be financial management

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, WESTFIELD CORPORATION – ASX WFD, WOOLWORTHS LIMITED – ASX WOW, COCA-COLA AMATIL LIMITED – ASX CCL, PUMA AUSTRALIA, REEBOK AUSTRALIA, INDITEX SA, ZARA, TESCO PLC, VICTORIA POLICE

Consumers feel sting of nation’s highest prices

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Original article by Shane Wright
The West Australian – Page: 13 : 8-Jul-14

The latest data compiled by web site numbeo.com on the cost of living in various cities globally show that Perth consumers are paying among the highest prices. The Western Australian state capital ranks 13th overall, ahead of Paris, London, Tokyo and Dublin. Grocery prices are 6.5% above those in Sydney and 6.7% higher when compared with Melbourne. The WA Industrial Relations Commission has declared a weekly increase of $A20 to the minimum wage, which at $A665.90 has surpassed the federal one of $A640.90

CORPORATES
NUMBEO.COM, WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED)

Budget blamed for retail slump

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Original article by Blair Speedy
The Australian – Page: 27 : 4-Jul-14

Australian retailers have blamed poor sales on the Federal Government’s May 2014 Budget. In May, retail sales dropped by a seasonally adjusted 0.5 per cent, the largest fall in 13 months. The greatest decline was in discretionary spending, with sales in department stores falling by 2.6 per cent. Australian National Retailers Association CEO Margy Osmond said that uncertainty about many Budget measures was weakening consumer confidence

CORPORATES
AUSTRALIAN NATIONAL RETAILERS ASSOCIATION LIMITED, AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIAN BUREAU OF STATISTICS, PACIFIC BRANDS LIMITED – ASX PBG, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, METCASH LIMITED – ASX MTS, THE REJECT SHOP LIMITED – ASX TRS, DEUTSCHE BANK AG, RESERVE BANK OF AUSTRALIA

Supply deals the way to go, says Coles

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Original article by Blair Speedy
The Australian – Page: 19/22 : 4-Jul-14

Coles has signed a 10-year contract with Murray Goulburn for the supply of milk. On 3 July 2014, Murray Goulburn opened a new milk processing plant in the Melbourne suburb of Laverton. The plant will produce 1.3 million litres of milk per annum, which will be sold at Coles supermarkets under its own brand. Coles MD John Durkan said the company will seek similar long-term supply arrangements with other food manufacturers

CORPORATES
WESFARMERS LIMITED – ASX WES, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, COLES GROUP LIMITED, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, MASTER GROCERS’ AUSTRALIA PTY LTD

ASIC not done yet in DJs battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17/22 : 4-Jul-14

The Australian Securities & Investments Commission (ASIC) will carefully monitor the $A2.2 billion takeover bid for David Jones by South African retailer Woolworths. The regulator is concerned that major shareholder Solomon Lew will gain a collateral benefit from Woolworths’ accompanying offer for Country Road. ASIC failed to gain a court order for an independent valuation of the benefit. However, it has other options to force disclosure of information to David Jones shareholders

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, LONERGAN EDWARDS AND ASSOCIATES LIMITED

ASIC steps into $2b DJs takeover

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1-Dec : 3-Jul-14

The Australian Securities & Investments Commission has acted in the $A2.2 billion takeover of David Jones by South African retailer Woolworths. The regulator is concerned that Solomon Lew will receive a collateral benefit from Woolworths’ offer for the remaining shares in Country Road. It believes that full ownership of the two businesses will increase synergies and may affect the value of the offer. It wants David Jones and Woolworths to provide more information before the shareholders’ meeting on 14 July 2014. However, a court ruled that David Jones does not need to provide an independent valuation of the collateral benefits

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, GRANT SAMUEL AND ASSOCIATES PTY LTD, FEDERAL COURT OF AUSTRALIA, LONERGAN EDWARDS AND ASSOCIATES LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION