IEL acquired Woolworths Limited

In September, 1988 the National Companies and Securities Council (NCSC) held an inquiry into IEL and its parent company Brierly Investments Ltd (BIL) over the circumstances in which those companies achieved virtual joint control of Woolworths Ltd by the acquisition of the Rainbow Corporation shareholding in Woolworths. Mr Justice Hodgson found that BIL had contravened the Takeovers Code by taking control of the New Zealand Rainbow Corp.

On 22nd November, IEL advised of an unconditional offer for all shares in Woolworths Limited at $3.65 cash per share. On 21st December, the Chairman of Woolworths stated that the Directors of Woolworths recommended acceptance of the offer by IEL to acquire Woolworths shares. On 28th April, 1989 IEL having acquired 98.4% of the shares in Woolworths, proceeded with the compulsory acquisition of the remaining Woolworths shares. At the cost $850 million Woolworths became a fully owned subsidiary of IEL and on 31st May, Woolworths Limited shares were delisted and the company no longer appeared on the Stock Exchange boards after having been listed for 65 years.