David Jones shareholders support Woolworths takeover - CNBC Africa

David Jones shareholders support Woolworths takeover

Southern Africa

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Woolworths announced its intention to acquire David Jones Limited for 21.4 billion rand in April. PHOTO: Getty Images

The annoucement, which was made by Woolworths in a statement, was after a scheme meeting with David Jones Limited on Monday.

[DATA WHL:Woolworths Holdings Limited] is a South African retail chain stores company and is headquartered in Cape Town. David Jones is an Australian department store.

In April, Woolworths announced its intention to acquire David Jones for 21.4 billion rand, but the deal was subsequently stalled by Australian billionaire Solomon Lew, who acquired a 9.9 per cent blocking stake last month.

(READ MORE: Australia's David Jones postpones Woolworths $2bln takeover vote

Lew’s move was claimed as a means of forcing Woolworths to either lift the David Jones offer or buy Lew's stake in Australian clothing retailer Country Road. Woolworths owns an 88 per cent stake in Country Road.

Lew held his stake, which has since increased to 11.88 per cent, for 17 years and prevented Woolworths from taking full ownership of Country Road.

According to Woolworths, David Jones has applied to the Federal Court of Australia for approval of the takeover scheme at a hearing scheduled for 17 July 2014.

“If approved, the scheme will become effective on 8 July 2014. Implementation of the acquisition is expected to occur on or about 1 August 2014 after which David Jones will become a wholly owned subsidiary of Woolworths Holdings Limited,” said Woolworths.

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