One of the most important deals in Australian retailing reaches a critical stage today with Myer Holdings and Premier Investments shareholders voting on a $1.1 billion strategic merger.
At 9 am AEDT (10 pm GMT) and 11 am AEDT, Myer (ASX: MYR) and Premier (ASS: PMV) shareholders respectively are being asked to approve Premier selling apparel brands to Myer in return for a 51.5% shareholding.
The deal would hand industry veteran Solomon Lew significant influence over Myer as he owns 40% of Premier through his Century Plaza Group.
Lew will return to the Myer board and Century Plaza Group will become the largest direct shareholder with a 26.8% stake after the new shares and Premier’s existing 26% Myer stake are distributed to Premier shareholders.
The Boards of both companies have recommended the transaction to shareholders.
“The combination of the Apparel Brands business with Myer is an opportunity for us all to play an important role in the future of the Australian and New Zealand retail landscape,” Lew told the Premier Investments annual meeting in December.
“The combination of Myer and the Apparel Brands will deliver enhanced scale to the combined group, more opportunities through loyalty, and extract growth throughout the design, sourcing and distribution process.”
Premier Investments is selling the Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E brands to Myer but retaining the Smiggle stationery and school supplies and Peter Alexander sleepwear brands and 30% of appliance maker Breville Group (ASX: BRG).
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