Foodland Associated Ltd said on Monday a shareholder vote on the planned sale of its New Zealand and Australian business will be delayed until October. Supermarket group Woolworth's Ltd and wholesaler Metcash Ltd aim to carve up rival Foodland in a $3.1 billion ($2.3 billion) deal that requires Foodland shareholder approval. The vote was originally scheduled to take place in August.
"The completion timetable and issue of the scheme booklet will be delayed," Foodland said in a statement to the Australian Stock Exchange. "The complex nature of the tripartite transaction has required preparation and agreement on a significant amount of documentation and information," it said.
The final scheme booklet was expected to be available to shareholders in late August.
Woolworth's will pay A$2.2 billion in a mix of cash and shares for the New Zealand operations, plus 22 Australian stores and development sites, and will acquire about A$300 million in debt. Grocery wholesaler Metcash offered A$780 million in cash, or A$859 million in shares, for Woodland's Australian business, excluding the 22 grocery stores and sites.
Metcash shares closed up 0.3 percent at A$3.91 while Foodland fell 0.2 percent to A$26.81. Woolworth's eased 0.1 percent to A$16.37.
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