Morningstar sees Myer's acquisition of five Premier's brands to proceed

Myer Holdings

29/10/2024 20:50

** Morningstar sees 100% possibility of Australia's Myer
 MYR.AX  merging with five of rival Premier Investments'
 PMV.AX  brands
    ** Myer, a department store owner will buy retail
billionaire Solomon Lew's Premier Investments' apparel brands
business, in a deal valued at A$863.8 million ($568.38 million)
    ** Myer's merger with Premier's apparel brands offers
something for everyone - Morningstar
    ** Brokerage estimates Myer is slightly overpaying for the
deal on a stand-alone basis but expects cost saving to
materially lift earnings
    ** Lifts fair value estimate of Myer by 11% to A$0.83, keeps
A$20.5 estimate on Premier
    ** Says the shares of both firm's are significantly
overvalued while anticipating intense competition among major
discretionary retailers
    ** MYR has risen 59.2% this year, as of last close while PMV
is up 23%

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))