Just saw your post, shocking news. If this is true, it means that relationship between management team and Lew has gone even worse. IMO this is not an attempt to raise capital to reduce debt (as its debt is already managed since the previous raise), but to further dilute Lew's holding in Myer, reduce his influence.
- A raise of A$200m @0.3 would result in additional 667m shares, comparing with current share outstanding of ~820m shares, this would dilute current shareholding by ~ 45%. This IMO is a strategic play in managerial terms, but would be a disaster for all existing shareholders. Maybe Lew will make a defensive play, but either way, corporate instability will further impact Myer's business in near term.
Personally, though I hold pessimistic view over Myer's outlook, I still hope this right issue is not true, just hate to see an iconic company getting screwed over by management team like that. It's christmas, give the shareholders a break.
MYR Price at posting:
62.0¢ Sentiment: Sell Disclosure: Not Held
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