The Supreme Court of Western Australia has approved the demerger between Coles and Wesfarmers.
By November 21, Coles is expected to commence trading on ASX under the new ASX Code ‘COL’.
The move comes after Wesfarmers shareholders voted in favour of the proposed $20 billion demerger of the supermarket giant.
A total of 601,032,572 votes were cast in favour with 2,900,858 against.
A scheme booklet, announced in early October, detailed changes the demerger would bring.
With Coles now admitted to the official list of the ASX, the company will consist of three key divisions – supermarkets, liquor and convenience.
Coles’ net debt following the demerger will be about $2 billion, and its balance sheet is expected to support strong investment grade credit ratings.
In the booklet, Wesfarmers board chairman Michael Chaney said Coles’ turnaround over the past decade, and its strategy to ensure it remains a trusted brand for Australians, sees it well positioned to continue to grow as a mature defensive business with strong investment characteristics.
“We are committed to ensuring Coles is set up with a strong foundation for success and growth as an independent listed company,” he said.
From its origins in 1914 as a variety store in Collingwood, Victoria, Coles has grown to become a leading Australian retailer.
Sales in the Australian grocery and liquor industry have grown over the period of June 1985 to June 2018 by 6.2 per cent and 7.2 per cent per annum respectively.