Shareholders of Foodworks keen on Coles deal

Posted by James Ferre on 18th August 2009

The shareholders of NSX-listed Foodworks have voted almost unanimously in favour of management’s purchase of 45 Coles outlets and eight associated Liquorland stores.

The $35 million deal, which received ACCC approval last month, was supported by over 95 per cent of the company’s shareholders.

The deal has been reported as a ‘win-win’ for both Coles and FoodWorks, as it allows FoodWorks to continue expanding their network while it is viewed by Coles as an important step in improving their store network.

“This development enables us to not only achieve a long-term goal of company owned stores quickly and cost effectively but also increases our buying power and market presence,” FoodWorks Chief Executive Peter Noble said yesterday.

The store transition will take place over a nine month period.