Myer Holdings Ltd (ASX: MYR) shares are pushing higher on Thursday.
In afternoon trade, the department store operator's shares are up over 3% to 93.5 cents.
This follows news that shareholders have voted in favour of its merger with the Apparel Brands business owned by Premier Investments Ltd (ASX: PMV).
The Apparel Brands business comprises Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E
Premier Investments shares are down 1.5% on the news.
Myer shares rise on big news
According to the release, an overwhelming majority of shareholders were in favour of the merger.
Myer reported that 96.16% of votes were approved the combination, with only 3.84% voting against it.
It was a similar story over at Premier Investments, with 99.96% of votes in favour of the transaction.
Myer's Executive Chair, Olivia Wirth, was delighted with the support from shareholders. Commenting on the meeting results, she said:
We are delighted with the strong backing from Myer shareholders for the combination with Apparel Brands. Our shareholders have demonstrated their overwhelming support for the combination with Apparel Brands and our strategy to create a leading retail platform across Australia and New Zealand.
Wirth believes the merger will transform Myer and create a stronger business. She adds:
Subject to the approval of shareholders at the Premier Investments EGM today, the combination will transform the Myer Group, creating a more resilient business with diversified earnings. I'm excited about the potential opportunities that open up for the business and our customers, team members and shareholders.
What's next?
In October, Premier Investments announced that it had entered into a binding share sale and implementation agreement with Myer.
This agreement sees Myer acquire the Apparel Brands Business in exchange for 890.5 million new, fully paid ordinary shares in Myer.
Premier would then distribute 100% of its shares in Myer to eligible shareholders by way of an in-specie capital reduction and in-specie dividend.
This will include both the new Myer shares received as consideration for the sale of Apparel Brands and Premier Investments' existing ~261 million Myer shares.
According to an update released today, the record date for the in specie distribution is 30 January. After which, the new securities are expected to commence trading on the ASX boards on 31 January.
Before then, Myer shares will trade ex-dividend for a 2.5 cents per share dividend on Friday. This will then be paid to eligible shareholders on 20 March.
