WES is very much like KKR; however, they do not butcher companies (generally speaking) the way PE normally does. Witness the current demise of Toys R Us, which is suffering under crippling debt from its takeover by PE then subsequent loading up of debt and final collapse, with a recent announcement that all stores in the USA will shut.
While I am thinking of it, MYR and Dick Smith also come to mind as two PE disasters.
The real difference is of course that the Coles is going to be distributed to shareholders and thus WES shareholders will continue to enjoy dividends and any growth from Coles, whilst freeing up WES to again start to get a decent ROC on its total portfolio.
Ann: Intention to demerge Coles - Briefing Presentation, page-45
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