Business
George Weston Limited announces agreement to purchase additional $500 million in Loblaw Companies Limited common shares to finance portion of Loblaw's acquisition of Shoppers Drug Mart Corporation
TORONTO , July 15, 2013 /CNW/ - George Weston Limited (TSX: WN) ("Weston" or "the Comp...
About this update from George Weston Limited
[{"type":"text","content":"\n\n\nTORONTO, July 15, 2013 /CNW/ - George Weston Limited (TSX: WN) (\"Weston\"\n or \"the Company\") today announced that it will subscribe for 10,515,247\n Loblaw Companies Limited (\"Loblaw\") common shares valued at $500\n million.  Proceeds from the private placement will be used to finance a\n portion of the cash consideration to be paid by Loblaw as part of its\n acquisition of Shoppers Drug Mart Corporation. The price per share to\n be paid by Weston will be $47.55, which was Loblaw's closing share\n price on July 12, 2013 and the same price at which shares are being\n issued to Shoppers Drug Mart shareholders under the transaction. \n Loblaw and Shoppers Drug Mart announced the combination earlier today.\n\n\nWeston is Loblaw's controlling shareholder, with voting ownership of\n approximately 63% of Loblaw's common shares.  Taking into consideration\n its current holdings and those to be purchased through the private\n placement, Weston will have voting ownership of approximately 46% of\n Loblaw's common shares upon completion of the acquisition.\n\n\nW. Galen Weston, Executive Chairman of Weston said, \"This investment\n underscores our strong support of this transaction and the value that\n can be generated by combining Loblaw, Canada's leading food retailer,\n and Shoppers Drug Mart, the country's leading pharmacy retailer.  By\n joining forces, the combined company will be uniquely positioned to\n better serve Canadian consumers and have the means to bring exciting\n innovations to the Canadian marketplace, leading to even stronger\n growth and profitability.\"\n\n\nAbout George Weston Limited\n\n\nGeorge Weston Limited is one of North America's largest food processing\n and distribution groups operating in two segments: baking through\n Weston Foods, and food and general merchandise distribution through\n Loblaw Companies Limited.\n\n\nForward-Looking Statements\n\n\nThis News Release for George Weston Limited (the \"Company\") contains\n forward-looking statements about the proposed acquisition by its\n subsidiary, Loblaw Companies Limited (\"Loblaw\") of all of the\n outstanding common shares of Shoppers Drug Mart Corporation. These\n statements reflect the Company's current expectations regarding the\n future operating and financial performance of the combined company. \n The Company's ...