Eight months after getting publicity for requesting the share register of Myer Holdings, the struggling department store chain, Solomon Lew and his Premier Investments are at it again. They have lodged a request for an updated register of shareholders.
Myer shares rose nearly 2% yesterday to a still very low 52 cents, which is well under the $1.14 average that Mr. Lew bought into the department store 18 months or so ago, taking an 11% stake.
But at one stage Myer shares were up 9% as silly investors speculated that Mr. Lew was plotting a takeover of Myer (one of the most tired stories on the ASX in the past couple of years).
The shares retreated when it was realised the request is all about keeping the pressure on the Myer board and nothing else.
Yesterday’s close is far better than the 37.5 cents Myer shares hit in May and their rise, especially after the enthusiasm in the past six weeks after the big write-downs in 2017-18 in August, has seen them top 60 cents.
But at these prices, Mr. Lew is still losing money – tens of millions of dollars and it obviously hurts.
Myer hold an annual meeting on November 30 and Mr. Lew’s request, revealed yesterday in a short statement to the ASX, is an obvious early warning shot as the company prepares for the meeting and especially the key motion to be put to the meeting (from his point of view) – the remuneration report, and especially for the new CEO, John King.
Mr. Lew has been waging war against the company for more than a year in a campaign to have his own own directors appointed to the board. He has targeted Myer chair, Gary Hounsell who, Mr. Lew wants removed.
He renewed his attack on the department store chain after the retail revealed an almost half-billion dollar loss for the 2018 financial year in September.
Myer reported a net loss of $486 million compared to an $11.9 million profit a year earlier, driven by falling sales and a $515 million write-down to the value of Myer’s goodwill and brand name.
In a short ASX statement, the company said: ‘’Premier has requested these registers in order to consider writing to Myer’s members in relation to any resolutions proposed at Myer’s AGM this year.”
There is a lot for Myer’s board and Mr. Hounsell to consider as they prepare to write to shareholders advising them of the AGM and the agenda.
