Billionaire Lew bids up to $824 mln for Just Group

By Victoria Thieberger

MELBOURNE (Reuters) - Billionaire Australian investor Solomon Lew on Monday offered to buy clothing retailer Just Group Ltd JST.AX, valuing it at up to A$898 million ($824 million) and sending its shares up as much as 12 percent.

Lew made the bid through his company Premier Investments Ltd (PMV.AX: Quote, Profile, Research, Stock Buzz), offering A$2.20 in cash and 0.25 Premier Investments shares for each Just Group share.

Executives at Just Group, whose brands include Just Jeans, Dotti, JayJays and Jacqui E, were not immediately available for comment.

Premier, a long-time investor in Just Group, last month increased its stake to 22.8 percent and put two of its representatives on the board.

"Premier is in a particularly strong financial position and it wouldn't surprise me if and they pounce on a few more in this market," said FW Holst analyst David Spry.

"Valuations have come back a lot and there are some good opportunities out there for those taking a longer-term perspective," he said.

Lew has been cashed up since selling Premier's 5.9 percent stake in retailer Coles Group last year in a protracted takeover battle to the eventual buyer, Wesfarmers Ltd (WES.AX: Quote, Profile, Research, Stock Buzz). Lew is a former chairman of Coles.

In a presentation, Premier said its offer was not subject to any regulatory approval or financing. It will fund the cash portion from its current cash reserves.