Earlier this week, Myer’s AGM in Melbourne had a surprise guest – Premier Investments’ chairman Solomon Lew.

Only weeks ago, Myer agreed to buy Apparel Brands’ Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E from Premier Investments in a move that will result in annual sales of more than $4 billion, $250 million in earnings.

Premier and Myer entered into a binding Share Sale and Implementation Agreement, whereby Myer would acquire the Apparel Brands business from Premier, in exchange for 890.5 million new, fully paid ordinary shares in Myer.

 

On Friday, Premier Investments held its own AGM, where Lew addressed the latest deal.

Premier has agreed to distribute 100 per cent of its shares in Myer directly to Premier shareholders by way of an in-specie capital return and in-specie dividend (partially or fully franked).

Premier held a 31.4% investment in Myer Holdings. At the end of FY24, the market value of that holding was $215.3 million.

Lew told the AGM gathering that as a result of the deal, Premier would no longer be a shareholder of Myer, with eligible Premier shareholders becoming Myer shareholders directly, whilst holding on to their Premier shares.

The Century Plaza Group, Premier’s largest shareholder today, will also become Myer’s largest shareholder, owning approximately 26.8% of Myer.

“Following an invitation from Myer, I intend on joining the Myer Board as a Non-Executive Director, in addition to continuing in my role as Chairman of Premier. The Century Plaza Group will continue to be the largest shareholder in Premier at approximately 40%,” said Lew.

“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.”

Lew reiterated that Apparel Brands’ Peter Alexander and Smiggle will remain under the ownership of Premier. He added that Premier will “retain flexibility to pursue a demerger of Peter Alexander and/or Smiggle in the future.”

Peter Alexander was Premier’s standout performer surpassing half a billion dollars in annual sales for FY24 for the first time with a record $508.6 million in sales, up 6.2% on FY23. Smiggle meanwhile delivered global sales of $296 million for FY24.

Premier reported a statutory net profit after tax of $257.9 million. Its Apparel Brands including Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E collectively delivered sales for the year of $790.7 million, indicating the scale of which Myer’s business could benefit as a result of the latest deal.