Myer, Premier Investments shareholders | Australian Markets

Myer and Premier Investments traders have overwhelmingly backed the division store’s merger with Solomon Lew’s large portfolio of clothes manufacturers in a deal designed to forge a retailing powerhouse amid powerful trading situations.

Myer shareholders on Thursday have virtually unanimously voted to merge with Premier, with 96.2 per cent voting in favour of the deal that may create a main retail group with more than 780 shops throughout Australia and New Zealand and 17,300 employees.

Almost 100 per cent of Premier shareholders voted in favour.

The mix will see Myer situation 890.5 million new shares to Mr Lew’s Premier in a deal whereby the 124-year-old division store takes control of manufacturers Simply Denims, Jay Jays, Jacqui E, Portmans and Dotti.

Beneath the transaction, Mr Lew will return to Myer’s board as a non-executive director and emerge as Myer’s greatest shareholder, along with his personal investment vehicle Century Plaza Group holding a 26.8 per cent stake.

This new mixed group is anticipated to generate more than $4 billion in annual gross sales and earnings of $250 million.

Regardless of a latest revenue downgrade in Premier’s Attire Manufacturers and a poor trading replace from Myer not too long ago, Myer govt chair Olivia Wirth stated there was “overwhelming support” for the transaction.

“This is all about not looking at one simple trade period or one cycle,” Ms Wirth stated in response to 1 shareholder saying the deal was “in no way shape or form a compelling deal”.

“This is all about establishing Myer to make sure that we can deliver returns through the cycle, it is a challenging industry and we need to make sure that we can participate in the growth that exists in the markets where we play a role.

“(The deal) gives us a stronger balance sheet, it means that we can battle the headwinds that we will see in retail.”

The previous Qantas loyalty boss added the deal was “one of the most significant corporate transactions in the company’s history”.

“Our strategic vision is to create a leading Australian retail platform, by identifying opportunities to deliver a step-change in Myer’s market position and generate substantial strategic and financial benefits to create value for you, our valued shareholders,” she stated.

Moreover, the mixed group created a more resilient Myer, Ms Wirth stated.

“As shown in our trading update released last week, Myer has not been immune from the cost-of-living crunch affecting the broader retail sector and other parts of the economy, both in Australia and around the world,” she stated.

“It demonstrates why it is crucial for retailers to continually innovate and evolve to strengthen and grow their businesses.

“And that, in essence, is what today is about — adapting our business to ensure it is best placed to thrive in the years ahead in a highly competitive and rapidly evolving retail market.”