I personally believe that the demearger is a very sensible move. Coles does not presently have a large growth potential as a part of Wesfarmers and if anything has held Wesfarmers SP back particularly on the cyclical ‘not good’ years.
Wesfarmers is a very sound, structurally sound company and by still retaining Bunnings would have the funds, in a demerger, to explore more productive areas further afield for capital growth.
Ann: Intention to demerge Coles - Briefing Presentation, page-22
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