Myer Group mulls $1.5 billion IPO after good result

Australian department store major Myer Group has decided to enter the stock market by raising up to $1.5 billion by the end of the year, the Melbourne-based company said in a statement yesterday.

Myer, together with Texas Pacific Group (TPG), the private equity company that acquired the retailer in a $1.4 billion buyout in 2006 from Coles Myer retail group, had begun a review process that could result in an initial public offering as market conditions improved.

Myer chief executive Bernie Brookes said a review of an initial public offering (IPO) had begun but any decision to list would be made by private consortium Texas Pacific Group and Blum Capital, which together own 84.2 per cent of the company, and the Myer Family Company, which owns 8.3 per cent.

"It's driven by what has been a particularly good sales and profit performance above our original thoughts in the fourth quarter, and because the turnaround initiatives we put into play ... are running ahead of schedule," he added.

A decision to re-list the business "potentially this calendar year" could result from a review prompted by continuing strength in sales and profits in the fourth quarter, the company said yesterday.

Myer also said its executive chairman, Bill Wavish, had retired in anticipation of the extra commitment needed for a float.