(Bloomberg) -- Wesfarmers Ltd. will sell its Coregas industrial gas unit to a subsidiary of Nippon Sanso Holdings Corp. for A$770 million ($480 million).
The Australian conglomerate expects to report a pre-tax profit of as much as A$260 million following completion of the transaction, expected in mid-2025, Wesfarmers said Friday in a regulatory filing.
“The divestment is in the best interests of Wesfarmers shareholders and is consistent with our disciplined focus on portfolio management,” Managing Director Rob Scott said.
Wesfarmers shares fell 5% in Sydney trading on Friday, their biggest one-day loss since May 2022.
Wesfarmers “has received a strong price for Coregas,” E&P Capital analyst Phillip Kimber said in a note. “However, in the context of the overall Wesfarmers Group, it is largely immaterial.”
Coregas produces and supplies industrial, medical and specialty gases to medium to large users across Australia and New Zealand.
--With assistance from Carmeli Argana and Georgina McKay.
(Updates Wesfarmers share price in fourth paragraph.)
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