PERTH, March 8 Wesfarmers Ltd, one of
Australia's largest retailers, plans to sell its insurance
broking business via an initial public offering worth around
A$1.12 billion ($1.02 billion), media reported on Saturday.
The company is expected to announce the spinoff of its Oamps
insurance broking business as soon as Monday, the Weekend
Australian newspaper reported. It cited unidentified sources
suggesting a trade sale of the unit was also being considered.
Wesfarmers' part-owned investment bank Gresham is advising
on the deal and Macquarie Bank and JPMorgan are likely to be the
lead managers, according to the newspaper.
Wesfarmers couldn't be reached for comment.
The coal-to-retail conglomerate, now in its 100th year, last
month reported a 11.2 percent lift in profit for the first half
underpinned by its strong retail businesses that include the
Coles supermarket chain, Officeworks, Bunnings and Kmart.
Wesfarmers sold its insurance underwriting business to
Insurance Australia Group Ltd last December for A$1.85
Oamps operates in 26 locations and is one of the largest
insurance broking networks in Australasia, according to the
There has been a resurgence in the initial public offer
market in Australia in 2014 bolstered by a strong first-half
Shares in Wesfarmers closed at A$43.41 on Friday, up 1.12
(Reporting by Morag MacKinnon; Editing by Robert Birsel)