Ross Illingworth
Kingfisher Capital Partners
Australian Financial Review
OPINION
12 October 2017
I am confident the other 50,000 Myer shareholders ("Myer strives to defuse Lew brawl", October 12) would expect Myer's incoming chairman, Garry Hounsell, to comprehensively engage with Solomon Lew – the only Australian inducted into the World Retail Congress Hall of Fame.
The difference in shareholder value creation between Solomon Lew's Premier Investments and Myer is as big as the Grand Canyon. A few back-of-the-envelope calculations: Myer's share price (excluding dividends) has declined from about $3.83 in November 2009 to around 73.5¢; a virtual wipe-out at 80.81 per cent.
Premier Investments (excluding dividends) has increased from about $7.87 to $13.14 – an increase of 66.96 per cent.
High on Mr Hounsell's to-do list is, surely, to explore how the two retailers could become one? That is a logical conversation in a tightening retail scene and with the right deal structure, would benefit all shareholders.