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David Jones Limited (ASX:DJS) has confirmed Myer Holdings Limited (ASX:MYR) approached the up-market department store chain about a possible merger in October last year and rejected the invitation soon after.
Under the proposed scheme of arrangement, David Jones shares would have been acquired by Myer in exchange for Myer shares at a zero premium exchange ratio, or 1.06 Myer shares for every DJs share.
David Jones says the approach was made on a confidential, conditional and non-binding and indicative basis, along with a request for due diligence.
The board rejected the offer after forming the view that the potential transaction did not have sufficient merit for David Jones shareholders to warrant engaging in discussions and providing the access and information.
David Jones says that any deal would have had substantial commercial, market, and regulatory risks, including an ACCC review process.
David Jones delivered a net profit of $95.2 million in fiscal 2013.
