AUS
NZ
UK
CA
USA
IND
Highlights
- Myer to acquire Premier’s Just Group, including key apparel brands like Just Jeans and Portmans, in exchange for 51.5% of Myer’s expanded share base.
- Premier will distribute its Myer shares to its shareholders, making them direct shareholders in both Premier and Myer.
- Premier to concentrate on its Peter Alexander and Smiggle brands, while Myer strengthens its apparel portfolio in Australia and New Zealand.
Premier Investments Limited (ASX:PMV) has announced a major strategic transaction with Myer Holdings Limited (ASX:MYR), resulting in a sharp 10% increase in Premier's share price. The two companies have entered into a binding Share Sale and Implementation Agreement (SSIA), under which Myer will acquire Premier’s Just Group, consisting of five major apparel brands—Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E—in exchange for 890.5 million new, fully paid ordinary shares in Myer. This transformative deal will significantly reshape both companies, with Premier refocusing on its remaining brands and Myer gaining a substantial share of the Australian and New Zealand retail market.
Under the agreement, Myer will gain full control of the five apparel brands, which generated $791 million in revenue and $76 million EBIT in FY24 (pre-AASB 16). As part of this transaction, Premier will retain ownership of Peter Alexander and Smiggle, which will form the core of "Premier Retail" moving forward, as well as its strategic holdings in Breville Group Limited and various real estate assets.
The 890.5 million shares Myer will issue to Premier represent 51.5% of Myer’s expanded share base. Premier has announced that it will distribute these newly acquired Myer shares, along with its existing Myer shareholding, directly to its shareholders. Each eligible Premier shareholder will receive approximately 7.2 Myer shares for every Premier share they hold, through a combination of in specie capital return and in specie dividend. This move is subject to shareholder approval, with the dividend expected to be fully or partially franked.
Following the completion of this distribution, Premier will no longer hold any shares in Myer, and its shareholders will become direct shareholders in both companies. The Century Plaza Group, Premier’s largest shareholder, will hold approximately 26.8% of Myer’s shares, making it Myer’s largest shareholder, while maintaining its 40% stake in Premier.
In addition to the transaction, Premier’s Chairman, Mr. Solomon Lew, will join the board of Myer as a non-executive director. Mr. Terry McCartney, who already serves as a director of both Premier and Myer, will continue in his role.
The deal, expected to be completed in early 2025, is seen as a major step in Premier’s strategy to concentrate its efforts on growing the Peter Alexander and Smiggle brands. Both brands have shown significant potential for local and international growth. Peter Alexander, known for its luxury sleepwear, and Smiggle, a stationery and accessory brand, will now receive increased focus and investment as Premier moves forward with its streamlined business model.
Meanwhile, the acquisition of Just Group will significantly strengthen Myer’s portfolio, expanding its retail offering in Australia and New Zealand. The addition of these iconic brands will further boost Myer's competitive position in the apparel market, enabling it to capitalize on opportunities for growth and market share expansion.
The market responded positively to this strategic shift, with Premier's share price surging by 10% following the announcement. Investors appear optimistic about the potential growth opportunities for both Premier and Myer as they implement their respective business strategies.
