WOOLWORTHS GROUP LIMITED — Capital/Financing Update 2012

Sep 26, 2012

27.09.2012

**PRESS

RELEASE**

Woolworths exit from specialty consumer electronics category

Woolworths
Limited
(Woolworths)
today
announced
the
divestment
of
its
retail
and wholesale
consumer
electronics
businesses
in
Australia,
New
Zealand
and
India.

Woolworths
CEO
Grant
O’Brien
said:
“We
announced
the
Company’s
strategic priorities
in
November
2011
which
included
a
review
of
our
portfolio
of
assets, particularly
our
participation
in
the
consumer
electronics
category,
with
a
view
to maximising
shareholder
value.
These
businesses
were
a
small
part
of
Woolworths
and this
divestment
will
allow
us
to
be
fully
focused
on
the
core
parts
of
our
business.”

**Divestment

of
Dick
Smith,
Australia
&
New
Zealand**

Woolworths
has
signed
a
share
sale
agreement
with
Australian
private
equity
firm Anchorage
Capital
Partners
(Anchorage)
for
the
divestment
of
Dick
Smith
Electronics (Dick
Smith).
The
transaction
is
expected
to
complete
in
late
2012
following satisfaction
of
customary
conditions.

Under
the
sale
agreement,
Anchorage
will
purchase
100
per
cent
of
the
business including
325
stores
employing
more
than
4,500
people.

Initial
cash
proceeds
will
be
$20
million
to
be
received
in
the
FY13
Year
with Woolworths
potentially
benefiting
from
any
upside
resulting
from
a
future
sale
of
Dick Smith
by
Anchorage.

During
FY12,
Woolworths
took
a
restructuring
provision
of
$420
million
pending
the divestment
of
Dick
Smith
and
advises
that
following
the
completion
of
the
sale
it
will have
no
future
downside
exposure
to
the
ongoing
business.

Cont.
2/……

**Divestment

of
stake
in
Woolworths
Wholesale,
India**

Woolworths
has
signed
an
agreement
to
sell
its
interest
in
Woolworths
Wholesale
to Infiniti
Retail
Limited
(owned
by
Tata
Sons)
for
A$35
million.
Woolworths
has
enjoyed a
successful
relationship
with
the
Tatas
since
2005.
In
that
time
we
have
provided
the retail
knowledge
and
wholesale
support
that
have
helped
them
to
establish
and
grow the
Croma-­‐branded
national
retail
chain.

Both
parties
entered
into
this
venture
with
the
intention
of
merging
the
wholesale
and retail
businesses
once
FDI
regulations
were
relaxed.
However,
with
our
decision
to
exit the
consumer
electronics
specialty
store
sector
in
Australia
and
New
Zealand,
we
have now
decided
to
sell
the
wholesale
business
in
India
to
Infiniti.
We
wish
them
every success
with
the
continued
development
of
the
Croma
brand
in
India.

CONTACT
DETAILS: Woolworths
Press
Office
(02)
8885
1033