February 19, 2018 / 12:32 AM / a year ago

Biggest shareholder in Australia's Myer seeking support to oust the board

SYDNEY, Feb 19 (Reuters) - The biggest shareholder in Australia’s Myer Holdings Ltd said he will formally request a meeting to oust the entire board within weeks, accusing the department store firm of lying to investors about the success of its turnaround plan.

Australian retail veteran Solomon Lew said in a letter to Myer shareholders that the company’s Feb. 14 removal of its CEO and promotion of its chairman to executive chairman could not help the company revive its declining sales.

“Myer has a discredited chairman for a CEO, a failed board, a dead strategy, declining sales and profits, an artificially-inflated balance sheet and massive liabilities,” wrote Lew, whose retail investment company owns 10.8 percent of Myer, in the letter.

A Myer spokesman was not immediately available for comment.

Lew said the company he controls, Premier Investments Ltd , had received Myer’s share register and would ask shareholders over the coming weeks to support removing the board at an extraordinary general meeting.

Premier would send a formal notice of meeting if it gets sufficient investor support. It would need support from more than 50 percent of Myer’s shareholders to remove the board. (Reporting by Byron Kaye; Editing by Edwina Gibbs)

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