Herbert Smith Freehills is advising David Jones (ASX:DJS) on a proposed takeover of David Jones by South African based retail group Woolworths (JSE:WHL) valued at A$2.15 billion.

The Board of David Jones has entered into a Scheme Implementation Deed with Woolworths under which it is proposed that Woolworths will acquire all of the David Jones shares outstanding by way of a scheme of arrangement for A$4.00 cash per share. In addition, shareholders on the register as at 10 April 2014 will receive the interim dividend already declared of A$0.10 per share (fully franked).

The deal is being led by Herbert Smith Freehills partner Rebecca Maslen-Stannage, supported by senior associate Courtney Dixon.

“We are pleased to be advising David Jones on this important transaction, which will deliver significant value to David Jones’ shareholders and provide additional capability and financial strength to this iconic Australian business,” said Ms Maslen-Stannage.

The implementation of the Scheme is subject to the approval of the requisite majorities of David Jones shareholders and the Australian Treasurer under Australia’s foreign investment rules.

David Jones and Woolworths shareholders will have the opportunity to vote on the Proposal in June 2014. Subject to the conditions of the Scheme being satisfied, the Scheme is expected to be implemented in mid July 2014.

Gilbert + Tobin is advising Woolworths.