April 9, 2014 / 12:30 AM / 3 years ago

REFILE-Australia's David Jones agrees to $2 bln offer from S.Africa's Woolworths

(Corrects spelling of Woolworths in headline and first paragraph)

SYDNEY, April 9 (Reuters) - Australia's No.2 department store operator, David Jones Ltd, said on Wednesday it had agreed to a takeover offer from South Africa's Woolworths Holdings Ltd valuing the company at around A$2.15 billion ($2 billion).

David Jones said it had entered into a scheme of arrangement with Woolworths for the A$4 per share bid which represented a 25 percent premium to its closing price on Tuesday.

David Jones was approached last year by larger rival Myer Holdings Ltd about possible merger but rejected the proposal.

David Jones Chairman Gordon Cairns said the board had considered a number of proposals including remaining a standalone company or merging with Myer but concluded that the Woolworths' deal was in the best interests of shareholders. ($1 = 1.0712 Australian Dollars) (Reporting by Lincoln Feast; Editing by Edwina Gibbs)

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