Shares of WES have opened over 5% higher to $43.60 as the company announced that it will divest its Coles grocery business into a stand-alone ASX listing.
This new entity will be made up of over 800 supermarkets and bottle shops, 700 gas stations and 88 hotels.
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The action will result in WES shareholders being granted shares in the new Coles business after WES retains a 20% equity holding.
This is all pending board, shareholder and regulatory approval.
WES was added to our Top 20 Model Portfolio about 2 years ago at $39.05. We would consider WES a Buy/Write opportunity at current levels.
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