It’s a weakness for retail billionaire Solly Lew, one which he identified in himself: the desire always for one more deal.
In late August, Lew announced that Premier Investments, a company he founded and floated on the stock exchange in 1987 only a few months after the Black Monday financial markets crash, was exploring the possibility of a demerger. Premier owns retail brands, among them Smiggle, Peter Alexander, Just Jeans, Jay Jays, and also has stakes in appliance maker Breville and department store Myer.
It solved the problem that had plagued Westfield’s shares for several years: they were undervalued. Westfield shares traded at a discount to net asset value, which is when the value of the company’s assets are higher than the market value of the company itself.Moreover, Lowy, who chaired Westfield, used the deal to resolve the succession question. Two of his three sons, Peter and Steven, were co-chief executives at the time of the deal.
It’s what any good retailer like Lew and Blundy would do. But there are some who wonder if a more accurate description of Lew isn’t that he’s the country’s best retailer but that he’s a terrific asset trader operating mostly in a retail world.Common to many of Lew’s deals over the decades has been his position of taking minority stakes in businesses, enough to have a seat at the table or exert control, and then waiting patiently, often for years or decades, before exiting at a hefty premium.
What is also common to many of Lew’s deals is his love for a nagging battle with the person or company on the other side of it. The current management and board of department store Myer knows this only too well.
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