A private equity group has made a $5.8 billion offer to take Macy’s private.
The offer from Arkhouse Management and Brigade Capital Management values the longtime department store chain at $21 per share, The Wall Street Journal reported. The two firms already own Macy’s (NYSE:Mr.) action.
Given Macy’s (Mr.) closing price of $17.39 on Friday, the offer represents a premium of approximately 21% to that close.
THE the newspaper said that the offer was made on December 1 and the company’s board of directors met to discuss it, although it is unclear what the board’s direction is.
Arkhouse and Brigade Capital believe that Macy’s (Mr.) is undervalued and are ready to increase their offer subject to due diligence. They also benefit from the support of an investment bank which provided them with a letter attesting to their ability to raise capital to complete the transaction.
Since the start of the year, Macy’s (Mr.) the actions are down about 14%.
In its third-quarter financial results released in November, the company beat its top and bottom line results, and also raised its sales and EPS guidance for fiscal 2023. Although it was a beat, revenues declined by approximately 7% compared to the period of the previous year.