Independent expert clears Myer's Apparel Brands acquisition
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The news: Myer's hopes of acquiring Premier Investments' Apparel Brands received a boost after an independent expert found the proposed deal "fair and reasonable" to the retail group's shareholders.
The numbers: Myer shares fell 2.4% to 82 cents while Premier shares rose 1.3% to $27.76 in early trading on the ASX.
The context: Shares in Myer and Premier have both slumped since Monday, after the companies reported declines in first-half sales amid challenging trading conditions.
However, the independent expert considered both trading updates and said it continues to find the proposed acquisition fair and reasonable, in the absence of a superior proposal.
Myer and Premier both said their respective independent directors continued to unanimously support the deal and recommend shareholders vote in favour of the acquisition at the company's extraordinary general meeting next week.
Premier's shareholders will also vote next week on Myer's proposed purchase of the Apparel Brands business, which includes brands Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E.
The sources: ASX announcement, ASX announcement
