Coles Myer sells Myer business for A$1.4b

MELBOURNE - Australia's largest retailer, Coles Myer, said today it would sell its Myer business and its prime Melbourne property for A$1.4 billion (A$1.02 billion) to a consortium led by private equity firm Newbridge Capital.

Coles said Bill Wavish, a former Woolworths executive, would become executive chairman of the Myer business, while current Myer head Dawn Robertson would depart once the transaction was completed.

The sale would allow Coles Myer to fund expansion and sharpen its focus on its core food and liquor business, as well as considering a return of capital to shareholders. The consortium of Newbridge Capital and Texas Pacific Group and which also includes the Myer family was selected after final bids for the department stores business were lodged earlier this month.

Coles Myer last year called for separate bids for the Myer business and for the flagship Melbourne property, which sprawls across part of two prime city blocks in the central business district.

Coles Myer shares have eased about 2 per cent this calendar year to Friday's close of A$9.97. Competing grocer Woolworths Ltd. shares have added 12 per cent and rival department store chain David Jones Ltd. shares have climbed about 30 per cent.

- REUTERS