On Friday, Wesfarmers announced an intention to demerge their Coles Food, Liquor and Convenience business. While this transaction has some attractive merits we also have some reservations and argue more information is required. How much of the current group’s debt Wesfarmers allocates to Coles vs retaining in the rump will... Show More
On Friday morning, Wesfarmers announced that they are looking to demerge its Coles division to create a new ASX top 30 company, with leading positions in supermarkets and liquor. This move was very well received by the market, with Wesfarmers stock finishing up $2.60, or +6.3%, on Friday. Over the... Show More
Good Morning, Show More
Old metals versus new metals is one strategic perspective on the BHP demerger. BHP Billiton will retain the group's interests in iron ore and copper. Newco will get the aluminium, nickel and zinc exposure. The latter metals are associated with rising living standards. Past critical income levels, the growth in... Show More
Among the BHP de-merger loose ends is how Australian shareholders are to access accumulated franking credits. These could be worth as much as the newly demerged company itself. The balance of assets suggests that the ongoing profits from 'Limited' will exceed those from the dual listed 'PLC'. Paying the same... Show More