Weston Family to Sell Shares to George Weston, Loblaw at Below-Market Prices

By Dave Sebastian

The family behind the Canadian food-processing company George Weston Ltd. and grocery chain Loblaw Cos. is selling some shares in the two companies at below-market pricing.

George Weston controlling shareholder W. Galen Weston, through an entity he controls, is selling shares as part of a reorganization of his holdings and doesn't have any intention to sell George Weston or Loblaw shares outside the Weston family, the two companies said Friday.

For the transaction, George Weston has agreed to buy for cancellation 1.3 million of its shares from an entity controlled by Mr. Weston, with the repurchased shares representing less than 1% of outstanding shares, it said. Loblaw has agreed to buy for cancellation 3.27 million of its shares from an entity controlled by Mr. Weston, with repurchased shares also representing less than 1% of outstanding shares, it said.

The purchase price to be paid to George Weston will be 97% of the lesser of the volume weighted average price, or VWAP, of George Weston shares for 20 trading days before the transaction agreement and the VWAP of George Weston shares for the two trading days before the transaction closes on Dec. 21. Those two terms also apply to the Loblaw transaction, the companies said.

After the transaction, Mr. Weston or entities controlled by him will have control over 52.8% of issued and outstanding shares of George Weston, the companies said. Mr. Weston recently owned 53.2% of George Weston outstanding shares and 1.48% of Loblaw outstanding shares, while George Weston recently owned 51.3% of Loblaw outstanding shares, according to FactSet.

George Weston, founded in 1882, operates through Loblaw, Choice Properties Real Estate Investment Trust and Weston Foods.

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(END) Dow Jones Newswires

12-18-20 0722ET