Melbourne retailer Solomon Lew has confirmed he acquired a 10.8% stake in Myer (MYR) for $101 million through his listed investment company, Premier Investments (PMV).
The substantial shareholder notice was lodged just after 4pm yesterday – two days after a mystery buyer snapped up about 81 million shares at $1.15 in a share raid on late in Monday’s session.
The stake makes Premier Investments, Australia’s largest specialty retailers with brands such as Smiggle, Peter Alexander, Portmans, Dotti and Just Jeans, Myer’s largest shareholder.
But Premier said it "does not currently intend to make a takeover offer"
Analysts think Mr Lew is likely to sit on his stake in the expectation Myer becomes a takeover target to protect his retail interests in the event of a bid.
Myer shares closed down 0.4% at $1.19, but are up 15% so far this week hitting a four-week high of $1.29 late Monday. About 18% of its issued capital has changed hands as hedge funds and other speculators jumped into the stock in the hopes of a bid eventuating.
Premier controls 25.7% of Breville Group as well. It has around $200 million in cash on hand and over $200 million in franking credits. That Breville stake alone is worth more than $340 million.
