Arkhouse and Brigade upped their takeover bid for Macy’s to $6.6 billion. By Reuters
© Reuters. FILE PHOTO: Customers leave the Macy’s flagship department store in Midtown Manhattan, New York, USA, December 11, 2023. REUTERS/Brendan McDermid/File Photo/File Photo
(Reuters) – Real estate-focused investment firms Arkhouse Management and Brigade Capital Management have raised their offers for Macy’s after the department store chain rejected a previous offer for the company that was too low. It was announced on Sunday.
The companies are now offering to acquire Macy’s shares they don’t already own for $24 per share, about 14% more than their previous offer of $21 per share.
The new offer for the company represents a premium of about 33% to Friday’s last close of $18.01 and values the company at $6.6 billion.
“We continue to provide an attractive alternative solution to the company by selling the company at a significant premium, which will provide significant value and immediate liquidity to Macy’s shareholders,” Arkhouse said.
“The Macy’s (NYSE:) Board of Directors will carefully review and evaluate the latest proposal,” Macy’s said in a separate statement.
Last December, the two investment firms submitted a proposal to acquire Macy’s stock they did not already own for $21 a share, but the department store operator rejected the offer due to concerns about financing and valuation of the deal.
Like other traditional department store operators, Macy’s has struggled to compete with younger online competitors and peers with smaller brick-and-mortar footprints. This gave Arkhouse and Brigade the opportunity to pressure Macy’s to explore a sale.
Macy’s is also facing a board challenge after investment firm Archhouse Management last month recommended nine director candidates, including executives with retail, real estate and capital markets experience, to the department store’s 14-member board.
