NATIONAL: The face-off between apparel retailer Just Group and takeover bidder Premier Investments has gained traction.
On April 28, Premier confirmed it would issue a supplementary bidder's statement to provide information to Just shareholders in response to thorny questions raised during a media briefing, shortly after Premier's lodgement of its initial bidder's statement on April 23.
Premier confirmed its supplementary bidder's statement would provide information to Just shareholders on a range of points.
These included Premier's view of current retail trading conditions, which it described as "very difficult" for specialty apparel retailers in Australia, adding it anticipated sales in March 2008 could be around five per cent lower than for the same time last year. Meanwhile trading conditions for Just Group fashion brands – which included Portmans Jacqui E, Jay Jays, Just Jeans and Dotti - were "likely to be difficult".
Premier also claimed it could bring "substantial value" to Just Group through sector skills and experience, and by working with Just Group's management team to enhance the company's long term strategic direction.
"Areas in which Premier may assist Just may include acquisitions of businesses or brands that will trade alongside Just or be synergistic with Just," Premier's statement said, adding that it did not rule out acquisitions of northern hemisphere brands or expansion of Just Group brands into the northern hemisphere.
Premier confirmed that while it did not believe New Zealand or South Africa were attractive markets at present, it had no plans to make any changes to Just Group's current investments in those markets.
Just Group chairman Ian Pollard said while the company welcomed Premier's qualifications of earlier statements, Premier's offer was still "hedged with generalities and speculation."
"Strong performance and financial returns underpin Just Group's future. This is being demonstrated within the current season, with sales growth that we believe to be above the market and on a positive trend," Pollard said.
Just Group hoped its concerns would be addressed in the supplementary bidder's statement from Premier, failing which Just Group would reserve its right to take action on behalf of its shareholders, he added.