* Offer beats rival bid from domestic rival Myer
* Offer is for A$4.00 per share
* Represents 25 pct premium to last closing price
(Adds deal details, company background, analyst comments)
SYDNEY, April 9 Australia's No.2 department
store operator, David Jones Ltd, said on Wednesday it
had agreed to a takeover offer from South Africa's Woolworth
Holdings Ltd valuing the company at around A$2.15
billion ($2 billion).
In doing so, it has spurned an offer from bigger rival Myer
Holdings Ltd, which in October 2013 proposed a nil
premium all-stock deal that had valued David Jones at A$1.4
David Jones said it had entered into a scheme of arrangement
with Woolworths, a mid to high-end retailer in South Africa, for
the A$4 per share bid. That represents a 25 percent premium to
its closing price on Tuesday and a 40 percent premium to its
close on Jan.30 when the Myer offer was made public.
"All I can say is that it's a surprise and it's a hefty
premium," said Morningstar senior equity analyst Tim
"I don't think Myer will be able to match that sort of
premium, but who knows - it's hard to tell," he said.
David Jones rejected the Myer proposal last year, but had
since included it in a number of options under consideration.
David Jones Chairman Gordon Cairns said the board had
considered several proposals including remaining a standalone
company or merging with Myer but concluded that the Woolworths'
deal was in the best interests of shareholders.
The South Africa-based Woolworths also owns 87.9 percent of
Australia's clothing and homeware store Country Road Ltd
($1 = 1.0712 Australian Dollars)
(Reporting by Lincoln Feast and Maggie Lu Yueyang; Editing by