MELBOURNE: Shares in fashion retailer Just Group shot up over 12 per cent yesterday, following a substantial takeover bid worth up to $898 million.
Premier Investments, a company helmed by prominent investor Solomen Lew, said it would offer $2.20 in cash and 0.25 investment shares for each Just Group share.
Lew said the bid offered shareholders a lucrative opportunity in a period of increased share market volatility, declining consumer confidence and uncertainty in both domestic and international economies.
"This offers Just Group shareholders with an attractive premium, substantial cash value as well as a continuing stake in the future growth of Just Group and the potential upside of Premier through a generous scrip component."
Rumours abound the bid was launched after claims the Opes Prime collapse was forcing a sell-off of Just Group shares. A major creditor of the collapsed investment firm, Merilly Lynch, was the biggest trader in Just Group shares yesterday, trading more than $14 million in the stock.
Premier indicated that in the event it acquired more than 50 per cent of Just Group's share capital, Just Group executives Ian Pollard and Jason Murray would continue in their involvement with the company.
Just Group has appointed financial advisor Caliburn Partnership and legal advisor Freehills to review the offer.
Just Group brands include Just Jeans, Jacqui E, Portmans, Jay Jays, Peter Alexander, Dotti.