Fashion retail powerbroker Solomon Lew stands to reap more than $200 million by blocking a takeover bid for department store David Jones.
Here's how.
1. South African-based Woolworths has made a $2.2 billion takeover bid for David Jones.
2. Lew recently acquired a 9.89 per cent stake in David Jones for over $200 million, enough to postpone and potentially block the takeover.
3. This is not the first showdown between Lew and Woolworths. Lew purchased shares in Country Road 17 years ago, blocking full ownership by Woolworths, which owns a majority stake.
4. Retail analysts speculate Lew's latest waltz hopes to attract a lucrative offer for his remaining stake in Country Road, giving Woolworths full reign of the company.
5. On Tuesday, Woolworths did just that, launching a takeover bid for Country Road and offering a whopping $17 for each remaining share.
6. The offer will translate to a $209 million pay day for Lew, who owns 11.9 per cent stake in the business.
7. This figure is well above Country Road's most recent market value of $172 million.
8. Lew is yet to indicate whether he will accept the offer, which is also dependant on Woolworths getting a green light from David Jones shareholders to take over the department store.
9. David Jones shareholders are due to vote on the Woolworths takeover on July 14.