Business
Loblaw Announces Closing of Plan of Arrangement to Spin Out Choice Properties REIT
Loblaw Announces Closing of Plan of Arrangement to Spin Out Choice Properties REIT ...
About this update from George Weston Limited
[{"type":"text","content":"\n\n\n\nLoblaw Announces Closing of Plan of Arrangement to Spin Out Choice Properties REIT\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Nov. 1, 2018\n\n\n\nTORONTO, Nov. 1, 2018 /CNW/ - Today, Loblaw Companies Limited (TSX: L, \"Loblaw\") and George Weston Limited (TSX: WN, \"GWL\") announced that Loblaw has completed the spin out of its 61.6% effective interest in Choice Properties Real Estate Investment Trust (TSX: CHP.UN, \"Choice Properties REIT\") pursuant to a previously announced plan of arrangement (the \"Arrangement\"). \nThe reorganization provides compelling benefits for each of Loblaw, GWL and Choice Properties REIT. It simplifies Loblaw as a pure-play retailer by spinning out a non-strategic business and allows Loblaw to focus on pursuing its core retail, connected healthcare, digital retail and payments and rewards strategy. From a Choice Properties REIT perspective, GWL is a more natural long-term owner of Choice Properties REIT and will provide support and capital for its growth and diversification plans. Additionally, GWL will be more balanced and diversified, with three strong and well-positioned pillars in retail, food and real estate. \nShareholder Consideration\nIn connection with the Arrangement, Loblaw public shareholders received 0.135 of a GWL common share per Loblaw common share held. Following the reorganization, GWL now owns an approximate 65.4% effective interest in Choice Properties REIT directly (which includes the approximate 3.8% effective interest in Choice Properties REIT owned by GWL prior to the reorganization). The public shareholders of Loblaw now own approximately 16.9% of the outstanding GWL common shares as a result of the reorganization. Loblaw shareholders continue to own the same number of Loblaw common shares as they did immediately prior to the reorganization. \nAs previously announced, Loblaw shareholders who sell their Loblaw common shares between the commencement of trading on October 30, 2018 through the close of trading on November 1, 2018, will have sold their shares with the right to rec...