Coles Myer has completed the sale of the Myer department store business to TPG-Newbridge Capital and the Myer Family for $1.4 billion.
Coles Myer’s chief executive John Fletcher said TPG-Newbridge would assume control of Myer immediately.
“The transition arrangements have been carefully designed to ensure business continuity for Myer and to ensure the sale process is seamless for customers,” he added.
While detailed financials associated with the transaction will be released with the annual accounts, current indications are that Coles Myer’s profit on sale after the impact of non-cash A-IFRS and tax accounting will be approximately $600 million.
Post completion Coles Myer will retain some contingent lease liabilities for Myer of approximately $170 million.
These will progressively diminish over the next few years.
Fletcher said that while the sale was now complete, Coles Myer would continue to provide some human resources, supply chain, marketing, IT and finance administration support in the interim.
By Kathryn O’Meara
