Myer Eyes New Investors In Battle Against Solomon Lew
Myer is fighting an enemy from within.
The embattled company is reportedly looking for potential investors that can provide both the capital to invest heavily, and the business expertise to challenge Lew’s 16 per cent controlling stake on the board.
Lew has been very vocal about his wish to overthrow the current board, believing them to be responsible for the company’s recent misfortune.
Myer wishes to sell off 10 per cent of stock to new investors, with new shareholders who are also experienced directors being targeted.
The company seems to be scrambling against the threat that Lew will call an extraordinary general shareholders meeting to replace the current board.
Last week he publicly demanded the Myer board release profit guidance for the last financial year, saying that any potential directors would need to see early financials in order to have the time to make an informed decision about joining the board.
Myer has enlisted Luminis Partners, which led Lew to release a statement saying he has no current takeover plans.
“Premier Investments Limited notes press articles relating to Myer Limited’s appointment of ‘defence’ advisers,” it said in a statement.
“Premier advises that it has no current intention of launching a takeover offer for Myer.
“Premier also acknowledges that Myer has confirmed that it is ‘fully aware of its continuous disclosure obligations’.
“According to Bloomberg, analyst consensus for fiscal 2021 has net income for Myer of $33.5 million. In fiscal 2020, Myer reported a statutory net loss after tax of $172.4 million.
“Does the Myer board consider that Bloomberg consensus reflects the benchmark for updating the market or do they look to the $172.4 million loss from fiscal 2020 as the relevant benchmark?
“All Myer shareholders will remain in the dark until the Myer board does what Premier and the vast majority of other retailers have done and update the market as a matter of urgency.”