Premier Investments offer unsolicited and unwelcome: Just Group
Thursday, April 24, 2008/
Fashion retailer Just Group says it has “very serious concerns” about a takeover offer from investment company Premier Investments.
Just has described the takeover bid as “unsolicited and unwelcome”.
Just chairman Ian Pollard said the offer of $2.095 cash plus 0.25 Premier shares for each Just share was well out of step with typical bids.
“This is highly opportunistic,” Pollard said.
“Further, if the offer were to proceed, dilution, lack of liquidity, an ill-defined strategy and uncertainty about board and management structures introduce additional risks for Just Group shareholders.”
Pollard said that in certain circumstances there might also be adverse capital gains tax results for some Just shareholders who accept the offer.
“In summary, the opportunistic bid is clearly structured to suit Premier’s objectives, not the interests of Just Group shareholders,” Pollard said.
Just is currently evaluating Premier’s bidder statement before it makes a formal recommendation to its shareholders in a target statement.
Meanwhile, Just Group has opened its first Peter Alexander store in the US.
The store was opened at Westfield Group’s (WDC) Valley Fair Mall in San Jose, California.
The company’s managing director Jason Murray said the group had been preparing for the international expansion of the Peter Alexander business since mid 2007 and was well set up to succeed in the US despite the tough conditions currently facing retailers in that market.