Loblaw closes spin out transaction with Choice Properties REIT

Date Closed

November 01, 2018

Lead Office

Toronto

On November 1, 2018, Loblaw Companies Limited (Loblaw) announced that it had successfully closed the spin out of its 61.6% effective interest in Choice Properties REIT (Choice Properties) pursuant to a previously announced plan of arrangement. George Weston Limited (GWL), which owned 3.8% effective interest in Choice Properties prior to this transaction, has acquired Loblaw's interest and now owns an approximate 65.4% effective interest in Choice Properties directly.

The reorganization provides compelling benefits for each of Loblaw, GWL and Choice Properties REIT. It simplifies Loblaw as a pure-play retailer by spinning out a non-strategic business and allows Loblaw to focus on pursuing its core retail, connected healthcare, digital retail and payments and rewards strategy. From a Choice Properties REIT perspective, GWL is a more natural long-term owner of Choice Properties REIT and will provide support and capital for its growth and diversification plans. Additionally, GWL will be more balanced and diversified, with three strong and well-positioned pillars in retail, food and real estate.

Loblaw is one of Canada's food and pharmacy leaders, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services.

McCarthy Tétrault advised The Special Committee of the Board of Directors of Loblaw with a team led by David Woollcombe and Robert Hansen, which included Douglas Cannon, Matthew Harris, Stefanie Morand, Justin Shoemaker, and Dean Xiao.

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