- Joined
- 2 June 2011
- Posts
- 5,341
- Reactions
- 242
I hope they double checked that the email came from the official Woolworths SA mailbox.
I hope they double checked that the email came from the official Woolworths SA mailbox.
DJS has been a takeover target since Miranda Kerr was 16 years old... I just can't really believe that Woolworths SA is willing to pay $4 for it.
It doesn't seem that expensive to me. DJS has no net debt, a property portfolio valued at ~$600m (on the books at $450m). There's some talk of building an apartment tower into the Market St building. So let's say they did a sale+leaseback of their property and using a cap rate of ~7.5% that's $45m off EBIT. So they've paid $1.4b for ~$100m EBIT in a tough retail market with the possibility of getting some kick along from any development of the Market St stores.. I'm sure they've penciled some efficiency gains, the jarps are usually pretty astute deal makers.
They obviously think that there is more a case for cyclical decline than structural decline with DJS.$1.4B for $100 EBIT which is ~$70m NPAT => PE 20. That's a department store in structural decline.
They obviously think that there is more a case for cyclical decline than structural decline with DJS.
For the last 10 years (from 2004-2013) average EBIT was about $180m, adjust for the leaseback I believe that makes it around $135m. Which is close to 10.3x EBIT/EV. Makes more sense if they looked at it in that light and factored in efficiency gains and brand rejuvenation.
$1.4B for $100 EBIT which is ~$70m NPAT => PE 20. That's a department store in structural decline.
Yet they valued DJS at 2x that of MYR. May be it means MYR is undervalued... perhaps they should buy MYR as well and average in.
quality service
I also think they could take a leaf out of the M&S Food idea, which is seriously fantastic food for what is basically ready to eat packaged food.
Moir said the department store rather than food was Woolworths’ focus in Australia.
However, if they could “do *something with the food offer and food *service offer that creates engagement and excitement” they would, he said.
Moore expects Woolworths will introduce changes into David Jones food halls with a bigger food offering. He says the big opportunity at the David Jones stores for Woolworths is to offer high-quality, ready-to-eat dinner as in Marks & Spencer’s metro stores.
DINNER FOR TWO
Marks & Spencer gives its customers a take-home option of a prepared *dinner for two, with desert and a bottle of wine for £10 ($18).
Moore said it has been *“phenomenally successful”.
“There’s space in Australia for a food offering in the major city centres where people are commuting and they stop into DJs and they pick-up some food on the way home. It will be a time-saving thing for metro shoppers.”
South African retailer Woolworths has opened the door to selling off David Jones’s $612 million property portfolio to reduce the cost of its $2.15 billion takeover offer.
In a circular to Woolworths shareholders, the food and clothing retailer says it intends to “review alternatives” with respect to David Jones’s freehold property assets once further information becomes available. This represents a subtle change in Woolworths’s position since it unveiled the friendly $4 a share takeover offer in April.
Woolworths chief executive Ian Moir has repeatedly said that Woolworths has no plans for the property assets, which are in the books at $612 million but could be worth as much as $1 billion if air rights above the stores were exploited. Last month Mr Moir denied that Woolworths was considering a sale and leaseback of the four Sydney and Melbourne stores to help pay for the acquisition.
“No, we didn’t look at the properties at all in this transaction,” Mr Moir told journalists. “We’re not property developers, we’re retailers, so in all of the stuff we’ve looked at we’ve really concerned ourselves with how we build this retail business . . . this is not a property transaction, this is a retail transaction,” he said.
Shame on those silly hedge funds who sold to Lew when he was acquiring. Shame on me for not reading the situation well enough to benefit as well...
Woolworths would be very aware that the deal cold[sic] get caught by laws that prevent one shareholder of a target company (ie Lew) from gaining a collateral benefit that would induce him to accept the offer.
Read more: http://www.smh.com.au/business/what...oad-revenge-20140624-3apz8.html#ixzz35X5sSr5n
Department store chain Myer has sacked one of its newest recruits and is considering legal action after what appears to have been an elaborate ruse involving some of the world’s *largest retailers.
Barely a week after trumpeting the appointment of Andrew Flanagan as general manager strategy and business development, Myer has terminated his position after just one day in the job upon discovering that he was not the man he said he was.
Myer chief Bernie Brookes was quickly *contacted by the managing director of Inditex Australia, Inigo de Llano, who set the record straight.
Andrew Flanagan as general manager
Hello, I want to find the historical share price of David Jones. How can I find it?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?