Billionaire investor Solomon Lew’s Premier Investments has sweetened its offer for clothing retailer Just Group by boosting the cash component of the bid.
Billionaire investor Solomon Lew’s Premier Investments has sweetened its offer for clothing retailer Just Group by boosting the cash component of the bid.
Lew offered Just shareholders another 15c in cash per share, taking the total value of Premier’s offer to $2.245 a share plus 0.25% of a Premier share. That values Just at around $4.49 per share.
But the sweetener comes with a catch – the extras will only be paid if Premier received 90% of acceptances.
Lew said in a statement Premier had decided to increase its offer despite a surprise profit downgrade issued by Just on 10 July following a bad period of trading in June. He argues the poor retail environment means the company needs new management or its share prices will stay under constant pressure.
“Premier believes Just needs its decades of experience across the retail spectrum to be able to navigate the headwinds facing it. Premier has the ability to provide Just with substantial cash resources which it can use to fund future acquisitions.”
Premier wants 50% of Just by 6 August or it will not extend past 15 August.
Related stories:
Read more on Just Group
ABOUT THE AUTHOR
COMMENTS
SmartCompany is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while it is being reviewed, but we’re working as fast as we can to keep the conversation rolling.
The SmartCompany comment section is members-only content. Please subscribe to leave a comment.
The SmartCompany comment section is members-only content. Please login to leave a comment.