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Australia’s Myer Holdings has confirmed its retailing rival, Premier Investments, has acquired a more than 10 per cent stake in the department store owner but has no current plans to make a takeover offer for the company.

The announcement, revealed via a substantial shareholder notice to the Australian Stock Exchange after the closing bell in Sydney, showed Premier, the listed investment company of billionaire rag trade veteran Solomon Lew, was behind a A$100m ($76.4m) stock market raid on Myer on Monday that saw shares close 18.3 per cent higher on the day.

In a separate statement, Premier said “it does not currently intend to make a takeover offer” for Myer.

Premier now has a 10.8 per cent stake in Myer. It bought most of its stake from fund manager Perpetual, which until Monday was Myer’s largest shareholder with a 9.5 per cent stake. Perpetual is no longer a substantial shareholder, it revealed in a filing to the ASX this afternoon.

Myer shares are down 13.8 per cent this year and closed 0.4 per cent lower at A$1.19. The company has a market capitalisation of A$977m. Premier shares ended 1 per cent higher.

Copyright The Financial Times Limited 2017. All rights reserved.

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