DJs postpone shareholder vote on takeover after Solomon Lew snaps up 10% of company shares.
The Federal Court has granted David Jones permission to postpone the planned shareholder meeting to vote on the proposed takeover by South African-owned Woolworths until July 14. The vote was due to take place on June 30.
Solomon Lew’s raid on DJs shares, now totals 10% of the company’s shareholding, has been blamed on the delay.
“The Scheme Meeting has been postponed following lodgement of a substantial shareholder notice by Australian Retail Investments yesterday, confirming that entities associated with Solomon Lew hold 9.89% of David Jones shares,” DJs said in a statement to the ASX yesterday
The delay will “allow sufficient time for the David Jones Board to assess the implications of ARI’s shareholding in David Jones for shareholders.”
Woolworths is proposing to acquire all of the David Jones shares on issues for $4.00 cash per share, in a deal worth around $2.2 billion.
Lew has a significant interest in blocking the South African takeover, not least because he owns several clothing retailers, some whose brands operate inside David Jones department stores. He has been building his stake in the retailer for several weeks.
Shareholders in the South African retailer, Woolworths voted in favour of the takeover proposal earlier this week.