Myer (MYR) and Premier Investments (PMV)
Hi I just received my MYR shares how do you price them and what are your thoughts on these PMV and MYR companies and retail stocks in Particular , Is any a buy or sell for you ? Thanks and regards Glenn G
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Answer
Hi Glenn,
In January 2025, Myer (MYR) acquired some brands from Premier Investments (PMV) worth around $864 million. This strategic move integrates Premier’s apparel brands—Just Jeans, Jay Jays, Dotti, Jacqui E, and Portman’s—into Myer’s operations, expanding its retail footprint to over 780 stores across Australia and New Zealand.
As a result of the deal, PMV shareholders received approximately 7.2 Myer shares for every 1 Premier Investments share held as of the record date. This distribution was valued at approximately A$1.03 billion. The distribution was executed as a capital reduction and dividend, with the Myer shares allocated to shareholders at no cost. Consequently, shareholders now hold Myer shares directly, and Premier Investments no longer retains any interest in Myer. In other worlds, the value of the MYR shares was distributed at zero cost which has the influence of reducing the cost base of a PMV holding. We don’t own either, however the share registries will distribute this info to shareholders.
We like the retail sector with rate cuts likely to be supportive through 2025 and see the deal from MYR as a potential game changer for that company, which is under strong new leadership (Olivia Wirth). We now view MYR with a more positive bias, while we know PMV has been a great investment over many years.
