Department store David Jones has shed another executive from its fold as it takes another step towards a merger with Myer.
The company today revealed it has re-appointed management consulting firm Port Jackson Partners Limited (Port Jackson Partners) as its strategic adviser to assess the Myer merger proposal.
In addition, David Jones has confirmed that Leigh Clapham has tendered his resignation as a non-executive director of the board, with effect immediately.
Commenting on the re-appointment of Port Jackson Partners, David Jones said the firm will assist the company in undertaking a review and assessment of the value of synergies that can be extracted if David Jones and Myer were to merge.
“In addition an assessment of the value that can be derived for shareholders if David Jones continues with the implementation of its Future Strategic Direction Plan on a stand alone basis will be undertaken.
“Given the Myer proposal is premised on a share swap, if discussions between the parties progress to the next stage, an assessment will be undertaken of Myer’s business as part of a broader due diligence exercise which will require Myer’s co-operation.”
David Jones chairman Gordon Cairns added that it is imperative that the company undertake this initial strategic work prior to commencing discussions with Myer.
“It will enable us to have a full understanding of the value that can be delivered to our shareholders if David Jones were to merge with Myer versus the value that can reasonably be expected to be delivered to our shareholders if the Company continues with its Future Strategic Direction Plan on a standalone basis. Once this work is completed we will be in a position to engage in a meaningful way with Myer,” he said.
Commenting on Clapham's departure from the company, Cairns thanked him for his service.
“On behalf of the board I would like to thank Leigh for his 15 months of service and contribution as a member of the David Jones board and wish him all the best in his future endeavours.”
Clapham indicated that it was “the right time” for him to step down.
“It has been a privilege to serve as a non executive director of David Jones. I believe that I have acted in the best interests of the company at all times and it is clearly the right time for me to step down and wish the company well in the implementation of its Future Strategic Direction Plan.”