At a shareholder meeting in Perth on Thursday,99 per cent of votes were cast in favour of the demerger,which will see Coles list on the ASX on November 21.
Wesfarmers chairman Michael Chaney said the spin-off would reposition both companies for the next decade,driving greater returns from Wesfarmers by shifting its focus to its higher-growth operations,which include Bunnings,Kmart and Target,Officeworks,and its industrials arm.
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Addressing concerns from some shareholders over the $2 billion in debt it has had loaded Coles up with,Mr Chaney said the new company would have a credit rating better than its rival Woolworths while also being able to afford upcoming capital expenditure.
"We’re confident that particularly given the strong cash flow of Coles,that that level of debt is eminently sensible,"he said.
“The whole motivation and the whole thrust of this demerger has been to set up Coles as a very successful company.
"It’s not as though we’re disposing it to someone else,we’re giving it to our shareholders,so it’s in all of our interests that Coles is structured appropriately."