David Jones is one step closer to an offshore takeover.
The company confirmed today that the Foreign Investment Review Board (FIRB) has given its approval for David Jones to be acquired by South African giant Woolworths Holdings Limited.
Specifically, the FIRB notified Woolworths that the Federal Government has no objection in terms of its foreign investment policy to Woolworths’ proposal to acquire 100 per cent of David Jones under the scheme of arrangement proposal announced on April 9, 2014.
As previously reported on ragtrader.com.au, the David Jones board agreed last month to a Scheme Implementation Deed (SID), where it was proposed that Woolworths will acquire all of the David Jones shares for AU$4.00 cash per share.
Accordingly, the condition precedent in clause 3.1(c) of the SID is now satisfied.
The David Jones board said it continues to “unanimously recommend that David Jones shareholders vote in favour of the scheme at the upcoming scheme meeting, in the absence of a superior proposal and subject to an independent expert concluding that the scheme is fair and reasonable and in the best interests of David Jones shareholders”.
Subject to those same qualifications, the directors intend to vote all David Jones shares respectively held or controlled by them in favour of the scheme.
A scheme booklet, providing full details of the Woolworths proposal (including reasons to vote in favour or against the scheme, an independent expert report and details on how to vote) is anticipated to be mailed to David Jones shareholders in late May 2014.
The scheme meeting at which shareholders can vote on the scheme is expected to be held in late June 2014.