Learn
Newsletter
Offers
Podcast
About
Pay My Rent
  Back
~
1
min read
· Posted on
March 27, 2024

Peter Alexander and Smiggle fly the coop amid Premier Investments retail split

Premier Investments has announced that it's looking to spin off its stationary brand Smiggle and sleepwear brand Peter Alexander.

What's the key learning?

  • Premier Investments predicts that spinning off the two brands will maximise growth for both of them.
  • When two companies demerge, it allows the individual entities to focus on themselves.
  • Premier Investments wants to open Smiggle stores in Indonesia, while it wants to launch Peter Alexander in the UK.

👉 Background: Premier Investments is the owner of popular Aussie brands like Smiggle, Peter Alexander, JayJays, Dotti, and more. The company has been listed on the ASX since 1987 and is currently valued at over $5 billion.

👉 What happened: Premier Investments has announced that it's looking to spin off its stationary brand Smiggle and sleepwear brand Peter Alexander, and have them listed on the ASX as independent retailers.  

👉 What else: This news has seen Premier Investments' share price jump 4%. Premier Investments predicts that spinning off the two brands will maximise growth for both of them.

What's the key learning?

💡Sometimes, two parts are worth more than the whole. When two companies demerge, it allows the individual entities to focus on themselves.

💡Both Smiggle and Peter Alexander have plans to expand internationally, but in different markets. Premier Investments wants to open Smiggle stores in Indonesia, while it wants to launch Peter Alexander in the UK.

💡Because of the growth potential, demergers often get investors hyped. According to Goldman Sachs, Australian demerged entities on average outperform the market by over 18% in the first year after demerger.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at Work
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 525288) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.