Foreign Investment Review Board approves David Jones takeover bid

THE FIRB has approved the $2.15 billion takeover of David Jones by South African company Woolworths Holdings.

David Jones CEO Paul Zahra following the AGM in Sydney.

AUSTRALIA’S Foreign Investment Review Board has approved the $2.15 billion takeover of David Jones.

The FIRB board had notified South Africa’s Woolworths Holdings that the federal government had no objection to its proposed takeover of David Jones, DJs said on Tuesday.

Woolworths, which is not related to the Australian retailer of the same name, launched its takeover bid in April with a $4 per share offer.

The David Jones board has recommended shareholders vote in favour of the takeover at a meeting expected to be held in June.

“The David Jones Board continues to unanimously recommend that David Jones shareholders vote in favour of the Scheme at the upcoming Scheme Meeting, in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is fair and reasonable and in the best interests of David Jones shareholders,” the company said in a statement.

The news comes as David Jones announces a 4.1 per cent lift in its third quarter sales.