Wilson Asset Management wants to see Myer’s accounts

Major Myer shareholder WAM has added to Solomon Lew’s calls for a trading update from the retailer, just a little more gently.

Solomon Lew (right) wants a Myer trading update immediately. Picture: David Geraghty.

Geoff Wilson’s Wilson Asset Management has called on Myer to release a trading update as soon as its accounts have been audited so investors can gain a better understanding of how the department store chain performed before recent lockdowns in Sydney and Melbourne.

It comes after demands from Solomon Lew, Myer’s biggest shareholder, to delays its AGM and immediately provide a trading update.

Wilson Asset Management, which is Myer’s second largest shareholder with a stake of 7.76 per cent, said many other ASX-listed retailers had released updates and unaudited results for fiscal 2021 ahead of the profit reporting season and Myer should follow suit.

“Like all retailers, and we are invested in quite a few retailers, it is a very uncertain time and situation and we understand there is a lot of exposure for Myer to CBD stores and so forth,” said WAM lead portfolio manager Oscar Oberg.

“We have seen a number of trading updates from other retailers in the last few months.

“So from our perspective we felt that Myer up until the most recent lockdowns in Sydney and Melbourne was actually doing pretty well and we think the balance sheet was being managed appropriately.

“They have to get their accounts audited and from our perspective we would like to see how they are trading/ A vast majority of other retailers have done it, and we would like to see how Myer has done.”

The demand from Mr Lew was stronger and came with a threat of a special shareholders’ meeting to eject the retailer’s board unless it delayed holding of its AGM later this year and also released a trading update.

For now WAM has stopped short of similar demands, but agreed other retailers have issued trading updates and Myer could do the same when it was feasibly possible.

In the looming battle for control of Myer, Mr Lew will need WAM’s support to scuttle the board and replace the directors with his own nominees.

Last year, after some hesitation and initial support for the Myer board, WAM decided to pull its backing of then Myer chairman Garry Hounsell who was forced to resign before the 2020 AGM when he discovered both Mr Lew’s Premier Investments and WAM would vote against his re-election.

Premier has a 15.77 per cent stake in Myer and Mr Low disclosed on Tuesday he was in discussions with “several-highly regarded and well credentialed independent non-executive directors” that he would seek to nominate as part of a clean sweep of the existing Myer board.

The billionaire wants more time for his proposed director nominees to scrutinise the accounts when Myer issues its full-year results in September and before an AGM is typically held in November.

Geoff Wilson’s WAM wants Myer to provide a trading update “as soon as it’s practically able to do so”. Picture: John Feder

Mr Oberg said WAM had yet to make a decision on supporting nominees put forward by Mr Lew for the Myer board, whether at an EGM or an AGM later this year.

“I would like to see how this plays out, who the nominees are and we would want more information before making a decision,” Mr Oberg said.

In the latest missive from Premier this week Mr Lew demanded Myer update the market on its recent trading, noting that the retailer concluded its 2021 financial year on July 31 and had not provided any updated information since the release of its first half 2021 results on March 4.

“Since Myer’s March 2021 release, Australian retailers have had to deal with continuous temporary closures in response to Covid-19 outbreaks across all major cities, constant changes in Australian consumer confidence and the continued fluctuation of shopping activity in Australia’s CBD stores where Myer has a very significant portion of its major stores,” Mr Lew said this week.

“Given the level of uncertainty and the large loss incurred last year by Myer ... Premier is requesting that Myer immediately update the market on its expected fiscal 2021 results.”

Mr Oberg noted a number of publicly-listed retailers had issued trading updates in the last few weeks, including many companies that WAM held shares in.

“Within WAM we have a number of investments in retailers that have given similar updates in recent months and I think Myer up until the lockdowns was performing well and the balance sheet was very strong. As soon as it’s practically able to do so I would like to see a trading update.”

Originally published as Wilson Asset Management wants to see Myer’s accounts