Wesfarmers gets frank
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AGRIBUSINESS and transport conglomerate Wesfarmers has released details of a plan to simplify its ownership structure.
About 50 per cent of Wesfarmers is owned by Westralian Farmers Co-operative Limited Investments, a body formed by the Franked Investments Fund and the Westralian Farmers Co-operative that created Wesfarmers.
The FIF was created in 1988 to give Coop members more value for their holdings.
The Wesfarmers plan involves acquiring WFCLI, exchanging its shares for FIF units and options and Coop stock and buying Gresham Partners Management Limited, the body responsible for the FIF.
Under the plan, one Wesfarmers share will be worth about 2.5 FIF units, roughly 10.5 FIF options and $12.90 of Coop stock.
Due to changed tax laws, such scrip for scrip deals will not draw any Capital Gains Tax liabilities.
Chairman Harry Perkins said the restructure would make Wesfarmers more attractive to investors.