Toronto / CA. (gwl) George Weston Limited announces agreement to purchase additional 500 million CAD in Loblaw Companies Limited common shares to finance portion of Loblaw´s acquisition of Shoppers Drug Mart Corporation. Weston announced that it will subscribe for 10’515’247 Loblaw Companies Limited (Loblaw) common shares valued at 500 million CAD. Proceeds from the private placement will be used to finance a portion of the cash consideration to be paid by Loblaw as part of its acquisition of Shoppers Drug Mart Corporation. The price per share to be paid by Weston will be 47,55 CAD, which was Loblaw´s closing share price on July 12, 2013 and the same price at which shares are being issued to Shoppers Drug Mart shareholders under the transaction.
Weston is Loblaw´s controlling shareholder, with voting ownership of approximately 63 percent of Loblaw´s common shares. Taking into consideration its current holdings and those to be purchased through the private placement, Weston will have voting ownership of approximately 46 percent of Loblaw´s common shares upon completion of the acquisition.
W. Galen Weston, Executive Chairman of Weston: «This investment underscores our strong support of this transaction and the value that can be generated by combining Loblaw, Canada´s leading food retailer and Shoppers Drug Mart, the country´s leading pharmacy retailer. By joining forces, the combined company will be uniquely positioned to better serve Canadian consumers and have the means to bring exciting innovations to the Canadian marketplace, leading to even stronger growth and profitability».
George Weston Limited is one of North America´s largest food processing and distribution groups operating in two segments: baking through Weston Foods and food and general merchandise distribution through Loblaw Companies Limited.