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.
Forward-Looking Statements
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 change.
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