The Myer Holdings Ltd (ASX: MYR) share price will be one to watch on Thursday.
This follows the release of a response to the recent buying of shares by retail conglomerate Premier Investments Limited (ASX: PMV).
What did Myer say?
In response to Premier Investments acquiring an interest greater than 15% in the department store operator, Myer has reached out to discuss the investment. This includes discussing the possibility of giving Premier Investments what it really wants – a seat on the Myer Board.
Myer's Acting Chairman, JoAnne Stephenson, reminded shareholders that the company has previously stated that it was open to constructive and positive dialogue with its major shareholders, with a primary objective of delivering value for all shareholders.
She commented: "Acknowledging that Premier Investments has increased its holding in the Company to greater than 15% and the significance of this change, I have reached out to Mr Lew and look forward to constructive dialogue."
"The Board is open to discussing appropriate Board representation of Premier Investments through nomination to the Myer Board," she added.
However, Stephenson has warned that board representation is far from guaranteed.
She explained: "In considering this, we would need to be satisfied around any issues or potential conflict that Premier's representation on Myer's Board could create and whether they could be addressed through governance protocols or other means."
What now?
Myer doesn't appear to want to make any changes to its strategy following this investment and stressed that its Customer First Plan is delivering results. Nor does the company want this development to distract it.
Stephenson said: "We have a well-articulated strategy in the Customer First Plan and it is delivering positive results, as seen at our 1H results despite the ongoing challenges that lockdowns and CBD traffic limitations present."
"Our balance sheet has been significantly strengthened through tighter inventory management and cash generation, we have improved our range of products, reduced space, significantly grown our online business, all whilst maintaining discipline over costs and capital expenditure."
"We are keen to have Board matters resolved as soon as possible. The Board is focused on ensuring that [CEO] John King and his management team are able to execute the all-important upcoming peak trading period without distraction," she concluded.
