DJs to review Myer merger
David Jones on Tuesday said it has appointed consultants to help it review the proposal, including any benefits for the two retailers.
The review will also assess the benefits of David Jones proceeding on a standalone basis.
Nonetheless, the latest statement from David Jones represents a significant shift for the company after it stated last year there would be no fair value to its shareholders in merging with Myer.
David Jones on Tuesday said that, given the Myer proposal was based on a share swap, and if talks between the two companies proceeded, an assessment would be made of Myer’s business, requiring Myer’s co-operation.
David Jones chairman, Gordon Cairns, said it was imperative the company undertook initial strategic work prior to talks with Myer.
“It will enable us to have a full understanding of the value that can be delivered to our shareholders if David Jones were to merge with Myer, versus the value that can reasonably be expected to be delivered to our shareholders if the company continues with its Future Strategic Direction Plan on a standalone basis,” Cairns said.
“Once this work is completed, we will be in a position to engage in a meaningful way with Myer.”
The latest developments in the proposed merger follow David Jones CEO Paul Zahra reversing his decision to quit the company, and Myer CEO Bernie Brookes’ re-appointment to his job.
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