Ann: Intention to demerge Coles - Briefing Presentation, page-9

Hmmmmmm I liked WES as the conglomerate.

Look at page 7 of the presentation, that probably explains in simplest terms why they are doing it.

- Consumes 61% of capital
- However contributed to only 35% of EBIT

To me its telling investors that supermarkets are going to be extremely competitive and as a result capital intensive. WES clearly thinks they can earn better $ on capital deployed elsewhere.

I prefer the conglomerate, however nothing I/We can do. We are retail holders. No doubts the institutional investors will love it and brokers will re-rate WES higher. *touch wood* I expect WES to go up on open. I doubt they would have done this without support of major holders.

Still reading through the rest of the presentation now.