Shares in David Jones have been placed in a trading halt, pending a court hearing on a takeover by South African retailer Woolworths Holdings.

The Federal Court in Sydney is expected to decide on Thursday whether or not the $2.2 billion takeover of the Australian department store business can go ahead.

David Jones shareholders on Monday voted overwhelmingly to accept Woolworths’ $4 a share offer, despite a small number criticising the foreign takeover of an iconic Australian company.

If the court approves the takeover, Australia’s oldest department store will be under foreign control from August 1.

However, the Australian Securities and Investment Commission (ASIC) could use the hearing to try to block or delay the takeover due to concerns about the dealings between Woolworths and David Jones shareholder Solomon Lew.

ASIC has questioned Woolworths’ decision to offer Lew more than $200 million for his stake in fashion retailer Country Road as it sought to prevent him from moving to block the David Jones takeover.

David Jones shares last traded at $3.98.