Myer seeks new investors in his fight to neutralize Lew
Last week, he publicly called on Myer’s board to release profit forecasts for the past fiscal year, saying potential managers need to understand the department store group’s financial situation beforehand. to agree to join the board of directors.
Nowadays. Myer did not provide any details on how he traded in the six months leading up to July 2021 and there is a yawning gap between the $ 172 million lost in the previous fiscal year and the market consensus of ” a profit of $ 33.5 million for fiscal 2021.
Myer is in desperate need of a stock price reassessment to convince her investors that she has a plan to recover her performance. Without it, Lew’s argument that Myer’s best chance at being saved will resonate among those who have watched the company’s earnings and share price deteriorate for years.
Interestingly, Myer enlisted the business consulting services of Ron Malek and Luminis Partners of Simon Mordant.
This duo have fought with Lew before, after mounting the defense against Premier’s hostile bid for Just Group.
But this time around, Malek, who is taking the lead, does not reject a takeover offer but defends a company with a poor balance sheet. He will naturally lead a line that Lew’s attempts to get rid of the board are tantamount to taking control of Myer without a takeover.
Myer has many modern governance arguments in his favor. But Lew has Myer’s poor performance in his corner.
Over the past 11 years, Myer’s shares have fallen more than 86 percent. Last year its chairman Garry Hounsell resigned after a prolonged attack by Lew and has yet to find a permanent replacement.
Lew has a lot of influence in the retail industry and has a proven track record in publicly campaigning against those who obstruct his plans.
He’s been fighting Myer for three years and history shows Lew playing a long game.
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