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Myer's largest shareholder pushes for new board

Apparel retailer Premier Investments Ltd., the largest shareholder in Myer Holdings Ltd., said Feb. 7 that it will call an extraordinary general meeting of Myer shareholders "to reconstitute the incumbent, failed board," following the Australian department store operator's disappointing sales and profit.

The majority shareholder said Myer's sales and profit downgrade announcement in December 2017 showed "a continued disappointing downward trajectory" and that the company will need to write down significant amounts of intangibles on its balance sheet when or before it announces its interim results.

"Premier strongly believes that a new Myer Board with relevant expertise and experience in retail, property and business is required as a matter of urgency," the company said in a statement. "It is not in the best interests of shareholders that the current Myer Board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced at board level."

Premier also said it believes it was previously misled by the board into acquiring a 10.77% stake in Myer.

Premier has requested a copy of Myer's shareholder register so it can engage with the shareholders regarding an extraordinary general meeting to oust the board. According to the announcement, it has already identified two director candidates to represent it on the new Myer board and one candidate to be an independent director. The candidates match the issues and requirements that the Myer business confronts, the company said.

Further, Premier said it plans to work with other shareholders in the next few weeks to nominate appropriate independent candidates to fill the rest of the board seats, which will be put to a vote at the proposed EGM.