(Reuters) – Shareholders of Australian apparel retail firms Myer and Premier Investments approved on Thursday the merger of the latter’s apparel brands with Myer, in a deal valued at A$864 million ($541.99 million).
More than 96% of votes cast by Myer shareholders favoured the combination, while over 99% of votes approved the merger at Premier’s meeting.
The merger will see the 125-year-old Myer take on Premier’s denim, womenswear, and casual apparel brands such as Just Jeans and Dotti, Jay Jays, Portmans, and Jacqui E, expanding its footprint to more than 780 stores across Australia and New Zealand.
Retail billionaire Solomon Lew, Premier’s top shareholder, will emerge with the biggest chunk in Myer following the transaction, controlling around 27% stake.
The merger culminates a long-running battle between Lew and Myer that began when Premier started buying the department store’s shares in 2017.
Lew has been a fierce critic of Myer and its previous board and management team, and blamed them for the retail chain’s underperformance.
Premier already owns around 31% stake in Myer.
Shares of Myer jumped 2.8% to A$0.930 on Thursday, while those of Premier slipped 1.7% to a one-week low of A$26.60.
($1 = 1.5941 Australian dollars)
