George Weston Limited announces its intention to invest $200 million in Choice Properties Real Estate Investment Trust
TORONTO, May 24, 2013 /CNW/ - George Weston Limited (TSX: WN) ("Weston or the Company") announced today that Choice Properties REIT, a real estate investment trust created by its subsidiary, Loblaw Companies Limited, filed preliminary prospectuses regarding an initial public offering of trust units and a concurrent offering of senior unsecured debentures with securities regulatory authorities in Canada.
Copies of the preliminary prospectuses will be available on SEDAR at www.sedar.com.
Weston also announced today its intention to purchase 20,000,000 units of the REIT at the offering price for a total amount of $200 million.
"I am excited about the potential of Choice Properties REIT to maximize the value of Loblaw's real estate over time while ensuring that Loblaw remains well positioned to grow the business going forward. I believe a direct investment in the REIT is a good investment for Weston that will yield incremental value to our shareholders," commented W. Galen Weston, Executive Chairman of the Company.
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.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, failure to complete the initial public offering of units and the debentures of the REIT and related transactions. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE George Weston Limited