Shoppers and pedestrians walk past Myer Holdings Ltd department store in Pitt Street Mall … [+]
Billionaire Solomon Lew's Premier Investments is merging its clothing brands with department store chain Myer Holdings to cement its dominance of Australia's retail industry.
Under the deal worth A$864 million ($541 million), Premier will inject Just Jeans and clothing brands such as Dotti, Jay Jays, Portmans and Jacqui E into 125-year-old Myer in exchange for new Myer shares.
The deal, which was approved by shareholders of both companies on Thursday, will see Lew's privately held Century Plaza Investments become Myer's largest shareholder with a stake of about 27 per cent. Premier will also inject $82 million in cash into the retailer.
“This merger will transform the Myer Group, creating a more resilient business and diversified earnings,” Myer Executive Chairman Olivia Wirth said in a statement. The group has a footprint of 780 stores in Australia and New Zealand.
Lu, who has a net worth of $2.3 billion, is chairman of Premier Investments, which owns brands such as Smiggle children's stationery store and pajama brand Peter Alexander. Premier is the largest shareholder in home appliance maker Breville.
