TORONTO, July 15, 2013 /CNW/ - George Weston Limited (TSX: WN) ("Weston"
or "the Company") today announced that it will subscribe for 10,515,247
Loblaw Companies Limited ("Loblaw") common shares valued at $500
million. 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, 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.
Loblaw and Shoppers Drug Mart announced the combination earlier today.
Weston is Loblaw's controlling shareholder, with voting ownership of
approximately 63% 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% of
Loblaw's common shares upon completion of the acquisition.
W. Galen Weston, Executive Chairman of Weston said, "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."
About George Weston Limited
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.
This News Release for George Weston Limited (the "Company") contains
forward-looking statements about the proposed acquisition by its
subsidiary, Loblaw Companies Limited ("Loblaw") of all of the
outstanding common shares of Shoppers Drug Mart Corporation. These
statements reflect the Company's current expectations regarding the
future operating and financial performance of the combined company.
The Company's estimates, beliefs and assumptions are inherently subject
to significant business, economic, competitive and other risks and
uncertainties regarding future events and as such, are subject to
There can be no assurance that the proposed transaction will occur or
that the anticipated strategic benefits and operational, competitive
and cost synergies will be realized. The proposed transaction is
subject to various regulatory approvals, including approval under the
Competition Act and by the TSX, and the fulfillment of certain
conditions, and there can be no assurance that any such approvals will
be obtained and/or any such conditions will be met. The proposed
transaction could be modified, restructured or terminated.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Other risks and uncertainties not presently known to the
Company or that the Company presently believes are not material could
also cause actual results or events to differ materially from those
expressed in its forward-looking statements. Additional information on
these and other factors that could affect the operations or financial
results of the Company included in reports filed by the Company with
applicable securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect the Company's expectations
only as of the date of this News Release. The Company disclaims any
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except as
required by law.
SOURCE: George Weston Limited
For further information:
Geoffrey H. Wilson
Senior Vice President,
Financial Control and Investor Relations