Australian retailer Myer has again offered its hand to David Jones to join in a $3 billion merger.
Myer Chairman Paul McClintock says he hopes David Jones will see that a merger would be in the interests of both companies’ shareholders.
The new offer comes after a board shakeup at David Jones with chairman Peter Mason leaving and two other director to go within three months.
This came after pressure from shareholders in the wake of a round one spurned merger proposal from Myer and accusations of inappropriate share trading at David Jones.
McClintock told the ASX in a statement today:
“We continue to believe our proposal is attractive and compelling. However, it can only progress with the support of David Jones. To that end, I have written today to the David Jones Chairman to reiterate our willingness to engage collaboratively on the unique opportunity to merge our companies in order to create significant value for our respective stakeholders.”
In a letter to David Jones, Myer proposed a nil premium, all stock transaction.
Respective shareholders would effectively share ongoing ownership (so neither side gives up or obtains control).
Cost synergies of more than $85 million a year would be shared equally by both sets of shareholders.
Myer also announced the re-appointment of Bernie Brookes as Chief Executive Officer.