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.
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