Myer shares race higher on 'overwhelming support' for merger

The department store expects the merger to create a stronger business.

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.

Ecstatic woman looking at her phone outside with her fist pumped.

Image source: Getty Images

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

Three guys in shirts and ties give the thumbs down.
Mergers & Acquisitions

Northern Star shares on watch after major takeover approach rejected

Could takeover interest help Northern Star shares recover?

Read more »

Two businessmen shake hands behind a window.
Mergers & Acquisitions

Reliance shares surge to a 52-week high on $4.1 billion takeover deal

Reliance shares are back in focus after another takeover development.

Read more »

US navy ship sailing along at sunset.
Mergers & Acquisitions

Austal shares surge 6% as another bidder enters the race

Austal shares are climbing after a new offer emerged.

Read more »

A woman in a red dress holding up a red graph.
Mergers & Acquisitions

Why are Ingenia shares soaring today?

It's deal-making time in the real estate sector.

Read more »

a happy plumber smiles while repairing bathroom fittings in a home.
Earnings Results

Reliance Worldwide FY26 profit falls but receives Brookfield takeover offer

Brookfield has made a non-binding $4.75 per share takeover offer.

Read more »

Two men in business attire play chess.
Mergers & Acquisitions

Steadfast Group shares in focus after $6.00 per share takeover proposal update

Exclusive talks have been extended until 21 August.

Read more »

two men shake hands on a deal.
Consumer Staples & Discretionary Shares

Tabcorp to acquire BetMakers in $267 million growth-focused deal

The company expects the acquisition to accelerate its strategy across multiple areas

Read more »

Two men in business attire play chess.
Mergers & Acquisitions

Steadfast Group shares: Consortium confirms $6.00 per share proposal

A consortium led by Amwins Group, Dragoneer Investment Group, and KKR has its eyes on the company.

Read more »