Just succumbs to predator

MELBOURNE: Just Group has announced it will recommend that shareholders accept Premier Investments' hostile takeover if Premier Investments receives acceptances of more than 50 per cent. Premier has received enough acceptance instructions to take relevant interest to 46.97 per cent of ordinary shares in Just Group. Just chairman Ian Pollard said the special board committee acknowledged that, in light of the changed circumstances, shareholders should accept Premier's offer if it achieved acceptances of 50 per cent or more, or sell their Just Group shares on the market.

Making the announcement yesterday (August 4) Pollard emphasized that Just Group still maintained Premier's offer did not adequately recognise Just's underlying value and future growth prospects.

Premier's core offer is $2.095 cash and 0.25 Premier shares per Just share. The cash component will rise by 15 cents if it achieves a relevant interest in at least 90 per cent of Just.

"We believe it is now in Just Group shareholders' best interests for Premier to achieve a relevant interest of 90 per cent or greater so that all Just Group shareholders are able to access the additional 15 cents per share cash consideration and be potentially eligible for capital gains tax scrip-for-scrip rollover relief," Pollard said.