Australian conglomerate Wesfarmers is reportedly planning to offer shareholders in Coles Group a 40% scrip component, potentially making its takeover bid for Australia’s second-largest retailer more appealing.
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The Wesfarmers-led consortium had previously considered offering an equity component of around 25% or a choice of all-cash. Analysts had estimated that a scrip offer could add between A$1.50 (US$1.25) and A$2 a share compared with a cash offer.
According to a report by Dow Jones Newswires, a person close to the situation said: “This increases the price gap even further, those numbers were based on 25% – now we’re talking a minimum of 40%.”
