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David Jones Limited (ASX:DJS) has backed a $2.15 billion takeover bid from South African retail group Woolworths.
Woolworths SA has offered to buy all the company’s outstanding shares for a cash payment of $4 per share, which represents a 25 per cent premium to yesterday’s closing price.
David Jones managing director and CEO Paul Zahra says this is a compelling proposal which represents a significant premium to not only our intrinsic value but also to broker valuations and to recent share prices.
The latest proposal comes in the wake of Myer Holdings Limited (ASX:MYR) approaching DJ’s for a $3 billion merger in October last year.
David Jones reported a net profit of $70.1 million in the 2013 financial year.
