Refile: CORRECTED-UPDATE 1-Retailer Myer to takeover Premier's apparel business in $569 mln deal

Myer Holdings

28/10/2024 23:58

(Corrects headline to remove "of")
       Oct 29 (Reuters) - Australian department store owner
Myer  MYR.AX  will merge with retail billionaire Solomon Lew's
Premier Investments'  PMV.AX  portfolio of apparel brands, in a
deal valued at A$863.8 million ($569 million), the companies
said on Tuesday.
    Under the deal, Myer will issue Premier 890.5 million new
shares in the retailer.
    Lew's Century Plaza Investments will emerge as the top
shareholder in Myer, with a 26.8% stake, and will also have his
own seat on the board. 
    Myer will acquire Premier's Just Jeans, Jay Jays, Portmans,
Jacqui E and Dotti brands. 
    Premier has been looking to unlock higher value for its
shareholders while it was working on a potential split of the
firm into four Australia-listed entities. It was working on a
possible spin-off of its sleepwear brand Peter Alexander and
kids' brand Smiggle.
    In September, Lew's firm parked plans of a proposed demerger
of kids' stationery juggernaut Smiggle while exploring the
tie-up with Myer.
    Myer has faced a difficult year amid a pullback in retail
and discretionary spending in Australia. 
    Its chair, Olivia Wirth, will continue to be the firm's boss
after the deal. 
    Sales have fallen 2.9% to A$3.3 billion in the year to July
27, with profit plunging 26%. 
    Myer in June had said it approached its then top
shareholder, Premier, to combine their apparel brands. 

($1 = 1.5188 Australian dollars)

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