Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi Guys, I’m a MM subscriber. I noted that with the official transaction with Myer completing today that Premier dropped more than 20 percent. I am keen to perhaps buy back in but wanted to ask why this happened today? Regards Chris S
Hi Chris,
The Myer (MYR) and Premier (PMV) deal went ahead this month, where Myer bought some of Premiers assets. As payment for those assets, Eligible PMV shareholders were allocated approximately 7.2 Myer Shares for every 1 Premier Share held. That is the reason for the drop in PMV’s share price, given holders will now also own MYR shares. Separately, MYR had a big drop in share price, however, that was not related to the deal, it was after they reported a soft quarterly sales update.
We think the deal made sense from both sides, and we actually like Myer (MYR) here more specifically than PMV given we think they have more room to improve from a low base, under new leadership (Olivia Wirth).
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