Retailer Myer to takeover of Premier's apparel business in $623 mln deal (updated)

Myer Holdings

28/10/2024 22:20

(Updates with background and details throughout)
       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$945.8 million ($622.71 million) in total, the
companies said on Tuesday.
    Under the deal, Myer will issue Premier 890.5 million new
shares in the retailer along with an A$82 million cash
contribution by Premier. 
    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))