NATIONAL: Just Group has responded to a supplementary bidder's statement from takeover prospect Premier Investments, by outlining continuing misgivings over the potential outcome for shareholders.
Premier released its supplementary bidder's statement on May 13, following an initial statement on April 23. The supplementary statement, running to 187 pages, clarified Premier's claims regarding numerous issues relevant to its takeover offer.
These included the impact of current and near-term trading conditions on Just Group, and the benefits to Just Group shareholders of Premier's diversified portfolio and skills package.
Responding to the supplementary statement on May 13, Just Group chairman Ian Pollard acknowledged that Premier's revised statement reflected the extensive changes it had agreed to make to clarify Just Group's concerns and to further elucidate statements made to the media by Premier chairman Solomon Lew.
However, "notwithstanding the correction of a number of shortcomings in disclosure, Just Group still has serious concerns in relation to the offer and its potential impact on Just Group shareholders," Pollard said.
Just Group's reservations were based on the fact that: Premier's offer was "opportunistic" and the outcome for shareholders remained uncertain; an investment in Premier represented a fundamental change in the investment profile for Just Group shareholders; Premier appeared "to need" Just Group (although Just Group did not need Premier); and it was not clear whether Premier would "add any value" to Just Group.
Just Group shareholders should also consider Premier's corporate governance framework and should refrain from an immediate response to the supplementary bidder's statement, Pollard said.
"Before making any decision, it is vital shareholders consider all of the information that will be provided in our 'Target's Statement'. Until then, shareholders should take no action in relation to the offer."
It is understood Just Group - whose fashion stable includes the Just Jeans, Jay Jays, Dotti, Jacqui E, Peter Alexander and Portmans brands - will release its target statement within weeks.