Wesfarmers management must consider a break-up of its conglomerate structure after several years of underperformance, starting with a spin-off of hardware group Bunnings, says a prominent fund manager.
John Sevior, founder of Airlie Funds Management, which owns several hundred million dollars' worth of Wesfarmers stock, estimated that Bunnings as a separate sharemarket-listed company could be worth $20 billion. This would be almost half of Wesfarmers' current market capitalisation.
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Anne Hyland is the Financial Review’s Companies Editor. She’s a former deputy editor of Good Weekend and Asia correspondent for The AFR. Email Anne at ahyland@afr.com
