SYDNEY (Thomson Financial) - Coles Group Ltd, Australia's second largest retailer, is expected to fall under the control of conglomerate Wesfarmers Ltd on Wednesday when shareholders are likely to endorse a scheme of arrangement to allow the takeover.
The proposed 20 billion Australian dollar deal, involving an offer of shares and cash, requires 75 percent of Coles shareholders to vote in favour of the scheme and 50 percent by value.
The Australian Financial Review newspaper reported Monday that institutional shareholders had lodged proxy votes in favour of the scheme ahead of today's 11.00 am (0200 GMT) deadline.
The scheme meeting will commence at 11.00 am Wednesday in Melbourne when Coles' board will again recommend shareholders accept the deal.
Under the takeover formula, Coles shareholders are likely to end up owning about 44 percent of an enlarged Wesfarmers, already an important player in the Australian retail market through its ownership of hardware and home improvement chain Bunnings.
(1 US dollar = 1.09 Australian dollars)
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