Industry and consumer groups will sell more than 1.8 million shares of stock and a portion of the companies debt in a bid to help repay the $1.3 billion in outstanding debt from the deal.
The shares will be sold at a cost of $1 per share.
The deal comes as part of a broader restructuring of the company, which is already shedding 1,000 jobs and has to sell a further 5,000.
The move comes after the company announced it would sell off some of its assets, including the popular retail chain, its headquarters in Melbourne and its online shopping operations.
It also announced it was closing some of the retail stores that it operates in the Northern Territory.
“The sale of the shares and the debt will enable us to repay our debt and to ensure we are financially stable,” Mr O’Neill said.
The sale will be completed in due course, he said.
The company said it expected the sale to close in September.
In an earlier interview, Mr O’tsley said he was looking forward to getting the deal done, but said it would take time.
“We are going to do this in the context of a whole restructuring of our operations, of our business, our growth, to make sure we are in a position where we can be in a sustainable and financially strong position going forward,” he said on Friday.
“It’s not something that is going to happen overnight.”
The company will be selling about 1.7 million shares, with about 775,000 being held in the private equity group New World Wealth.
Mr O’tlley said the debt would be repaid by the end of next year.
“The interest will be paid in a fair and equitable manner and that will include interest from the Commonwealth,” he told ABC Radio National.
The sale was made possible by the Federal Government’s support to the Northern Australian government in its debt restructuring.
The Government announced on Thursday it would spend $100 million on the sale of some of Australia’s most successful businesses, including Coles, Woolworths, Marks & Spencer and Coles Supermarkets.
The Federal Government said it was committed to delivering a better, more stable future for Australia and its people.
Australia’s debt crisis was worsened by the global financial crisis of 2008, with the Australian dollar falling more than half a cent against the US dollar and the Commonwealth Bank in Australia experiencing a collapse in its lending standards.
Last week, Treasurer Scott Morrison said the Government was taking the issue seriously and that a review was underway into how the debt restructuring could be implemented.