Loblaw files information statement containing new details on Shoppers deal

TORONTO – Loblaw Companies Ltd. (TSX:L) has filed an information statement that contains new details about its proposed $12.4-billion takeover of Shoppers Drug Mart Corp. (TSX:SC).

Meanwhile, Shoppers is urging its shareholders to vote in favour of the deal at a special meeting on Sept. 12 after its board of directors unanimously approved the agreement.

George Weston Ltd. (TSX:WN), which owns about 63 per cent of Loblaw’s voting shares, has already provided written consent in favour of the deal to the Toronto Stock Exchange, which satisfies the approval requirements from Loblaw’s end.

Loblaw says it may issue a maximum of 119.9 common shares to Shoppers shareholders during the transaction. Loblaw will also issue around 10.5 million shares to George Weston Limited.

Combined, these 130.4 million shares represent about 46 per cent of Loblaw’s outstanding common shares, the company said in a statement released Tuesday.

The two companies announced the plan to combine their operations last month, noting that the acquisition will keep Shoppers’ brand name in place and allow it to operate as separate division of Loblaw.