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Premier starts moves against Myer board

AAP  |  07 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Premier Investments (ASX: PMV) is acting on threats to oust the board of Myer (ASX: MYR) with a request for the department store chain's shareholder register in a first step towards holding a vote to install new directors.

In the latest move in the ongoing war between Myer and its largest shareholder, Premier has requested the Myer share register to "facilitate engagement" on an extraordinary general meeting, where a vote to reconstitute the company's board can be taken.

Myer's board suffered a first strike at its last AGM and, following poor Christmas sales, Premier said "urgent" change was needed now that it seems likely Myer's 2018 AGM will see a second strike and, consequently, a spill of the entire board.

Weak sales and a profit downgrade in December 2017 clearly showed "a continued disappointing downward trajectory" Premier said in a statement on Wednesday.

Premier said a "significant circuit-breaker" is needed for the department store to have a sustainable future.

Mr Lew, as chair of Premier, has been sharply critical of Myer's performance and its turnaround strategy of store closures and heavily discounted lines.

"It is not in the best interests of shareholders that the current Myer board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced at board level," Premier said.

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Premier already has its preferred nominees in place ready to assume directorships on a refreshed Myer board and said it will consult with Myer shareholders on candidates for other board places.

Premier Investments will pay for the EGM, "in the interests of all shareholders."

At 1225 AEDT, shares in Myer, which have lost around 40 per cent since Premier bought its stake in March, were down 0.25 cents, or 0.4 per cent, at 64.75 cents.

 

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© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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