Premier Investments, chaired by entrepreneur Solly Lew, has launched a takeover offer for retailer Just Group valued at close to $900 million.
Premier says it will offer $2.20 in cash and 0.25 Premier Investment shares for each Just Group share. Lew says the offer range of between $4.11 and $4.46 a share represents a 16.9% to 26.8% premium over Just Group’s closing price on Friday.
The offer allows Just Group shareholders to partially realize their Just Group investment in cash at a premium while retaining exposure to Just Group and participating in the potential value upside in Premier Investments, says a statement from the Premier Investments.
Premier already has a 22.8% stake in Just which includes brands like Portman, Peter Alexander, Dotti, Just Jeans and Jay Jays.
Meanwhile Just Group shares are expected to be exposed to market turmoil this week due to the collapse of Opes Prime. Its main creditors ANZ Bank and Merrill Lynch are expected to claw back capital by liquidating a $1.5 billion portfolio of stocks which include Just Group.
A spokeswoman for Just Group refused to comment on the takeover bid or on the affect on Just Group from the collapse of Opes Prime.