SYDNEY (Reuters) — South Africa's Woolworths Holdings Ltd's $200 million bid to buy out Australian retailer Country Road Ltd shareholders was fair and reasonable, an independent expert said on Monday.
Woolworths welcomed the findings, which will help ease any shareholder concerns that it paid too much for the Country Road stake in order to remove a potential obstacle to its bid to take over Australian department store chain David Jones Ltd.
Last month, Woolworths offered to buy the near 12 percent stake in Country Road held by billionaire Solomon Lew, on the condition that its separate A$2.2 billion ($2.07 billion) bid for David Jones went through.
Lew had amassed a holding of just under 10 percent of David Jones and the Country Road offer was seen as an attempt to secure the David Jones deal, which was agreed by shareholders earlier this month.
Independent expert Lonergan Edwards and Associates said it valued Country Road at A$14.92 to A$16.22 per share, compared with the A$17 per share bid from Woolworths.
Not included in the valuation were benefits unique to Woolworths from buying out Country Road through the ability to grow the business faster and increased certainty about savings benefits, the expert said.
An Australian-based spokesman for Woolworths said Country Road and Woolworths shareholders could be happy with the deal.
"The offer is fairly priced from the perspective of both Country Road and Woolworths shareholders, reflecting the unique benefits that only Woolworths can derive from having 100 percent of Country Road as well as David Jones," he said in an emailed statement.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)