An investor group has raised its takeover bid for Macy’s by nearly $1 billion.
Arkhouse Management and Brigade Capital have floated offers to acquire Macy’s for nearly $1 billion in a bid to take the department store chain private.
In a statement Sunday, the investor group said it was raising its bid to acquire Macy’s M.
This is an increase from the $21 per share bid (approximately $5.8 billion) that Macy’s board rejected in January, saying it lacked “compelling value” at the time, to $24 per share (approximately $6.6 billion).
Arkhouse and Brigade said the new offer represents a 51.3% premium to Macy’s stock price as of November 30, 2023, when the original offer was filed. And they noted there was a 33% premium to Macy’s stock price as of Friday, when it closed at $18.01 per share.
“We remain frustrated by the delaying tactics adopted by Macy’s board and its continued refusal to engage with a group of trusted buyers,” Gavriel Kahane and Jonathon Blackwell, managing partners at Arkhouse, said in a statement. “Nonetheless, we remain firm in our commitment to deliver on this deal.”
In a statement Sunday, Macy’s confirmed it had received the proposal and said it would “carefully review and evaluate the latest proposal consistent with the board’s fiduciary duties and in consultation with its financial and legal advisors.” A Macy’s spokeswoman said she had no further comment.
Macy’s announced a restructuring plan last week that would see it close 150 stores, including its iconic flagship store in downtown San Francisco. Separately, the company also announced fourth-quarter results that exceeded expectations.
“The restructuring plan unveiled by Macy’s last week failed to inspire investors, but its fourth-quarter results and year-end results provide greater confidence in the company’s long-term prospects if it goes private,” Kahane and Blackwell wrote. He said. sunday.
Macy’s shares are down about 10% year to date and 21% over the past 12 months, compared with the S&P 500’s SPX, which is up 8% in 2024 and up 27% last year.
