Myer buyer puzzle as shares take fall
Townsville SHARES in Myer have lost ground as the nation’s biggest department store waits to learn the identity of a mystery buyer who has grabbed a 10 per cent stake in the retailer.
Myer said it was yet to be contracted by the buyer who launched a $ 94 million raid on the retailer, sparking rumours it is being stalked as a takeover target.
“Myer has not received any communication in relation to yesterday’s trading or any corporate activity,” it said yesterday.
“Myer will continue to keep the market informed in accordance with its continuous disclosure obligations.”
The mystery buyer has until Wednesday to file a substantial shareholder notice with the local bourse.
The raid on Myer sparked rumours the department store chain was being targeted for takeover by Melbourne- based retail billionaire Solomon Lew.
Other potential buyers include David Jones owner Woolworths Holdings and fellow South African retailers Edcon, now led by former Myer chief Bernie Brookes, and Steinhoff International which owns Best & Less and Harris Scarfe.
The mystery buyer paid $ 1.15 a share in late afternoon trade on Monday – a 6.5 per cent premium to the $ 1.08 that Myer shares were changing hands for just prior to the raid.
The raid produced the biggest single- day share price rally at Myer – 18.3 per cent – since it listed in 2009.
Mr Lew’s Premier Investments owns stationery brand Smiggle, pyjama label Peter Alexander and fashion lines Just Jeans and Portmans among other businesses.
The Myer trade was executed by Mr Lew’s long- time broker Blue Ocean Equities and clearing house Pershing Securities.
Both have executed trades for Mr Lew in the past, including when he bought into David Jones in 2014 as it was being targeted by South Africa’s Woolworths Holdings.
He went on to pocket a $ 190 million profit after Woolworths bought him out to get its takeover across the line.
Mr Lew has repeatedly dismissed suggestions he might move on Myer since that payday.
Premier and Woolworth Holdings declined to comment on the transaction yesterday.
Edcon and Steinhoff International had not responded to Business Daily by the time of publication.
Shares in Myer closed 5.2 per cent lower at $ 1.20.