Wesfarmers has raised $1.060 billion from another sale of part of its stake in Coles Group. Wesfarmers said it had sold 5.2% of Coles at $15.39 a share.
The sale will settle on Thursday of this week.
Wesfarmers said it expects to recognise a pre-tax profit on the sale of approximately $130 million.
The sale follows the disposal of a 4.9% stake in Coles for $1,050 million, taking the amount raised to more than $2.1 billion.
But that doesn’t matter – it’s the cash that is the key to the sale.
Another $1 billion during the COVID-19 pandemic and slide in economic activity, will help Wesfarmers continue to finance its industrial businesses, as well as Bunnings, Target, Officeworks, and Kmart at a time when stores are shut and revenue and cash are drying up.
Wesfarmers will still have a 4.9% interest in Coles and has agreed to retain its remaining shares in Coles for 60 days from completion of the sale.
The company retained a 15% stake in Coles after the spin-off in late 2018.
Given the two sales so far this year, Wesfarmers will be a seller in June at this rate.
Coles shares slid nearly 10% yesterday to $15.16 while Wesfarmers shares dropped 4.5% to $34.27.
