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TPG-owned Myer readies for IPO

The global buyout firm has reportedly hired three banks to lead the IPO of Australian department store Myer Group, which it acquired alongside the Myer family office in April 2006.

Global buyout firm TPG looks set to test Australia's IPO market soon with what could be the country’s largest IPO since the economic downturn began. The firm has hired three banks to manage the initial public offering of Myer Group, a chain of department stores it acquired three years ago, according to Reuters.

A Myer spokesman said that a review pertaining to an IPO is ongoing but nothing has been confirmed yet. In early August, Myer said in a statement that it would begin a review process that could result in an IPO “in the near term, potentially this calendar year”.

The prospective IPO would value Myer at about $2.1 billion, according to the newswire.

In 2006, TPG led a consortium including Newbridge Capital and the Myer family office to acquire the Myer retail business for a consideration of A$1.4 billion ($1 billion; €858 million) from Australia’s largest retailer Coles Myer. TPG subsumed its Asian affiliate Newbridge Capital later in 2006.

Sources told Reuters that Macquarie Group, Goldman Sachs and Credit Suisse have been selected as the lead managers for the listing. It is not clear yet whether the owners, which also include Blum Capital, intend to keep a stake in the business, the report added.

Myer has 65 stores across Australia. Its business strategy focuses on four main categories: womenswear, menswear, cosmetics and soft home furnishings. It also sells electrical goods, furniture, childrenswear and toys.

TPG declined to comment.