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A private equity group has made a $5.8 billion bid to take Macy's private.
The offer from Arkhouse Management and Brigade Capital Management values the department store chain at $21 per share. The Wall Street Journal reported. The two companies already own some Macy's (New York Stock Exchange:M) stock.
Given Macy's (M) closing price of $17.39 on Friday, the offer represents a ~21% premium to that close.
He newspaper said that the offer was made on December 1 and that the company's board met to discuss it, although there is no information on how the board is inclined.
Arkhouse and Brigade Capital believe Macy's (M) is undervalued and are willing to raise their offer subject to due diligence. They also have the support of an investment bank that has provided them with a letter regarding their ability to raise capital to complete the deal.
So far this year, Macy's (M) stock is ~14% less.
In its third-quarter financial results released in November, the company beat results and also raised its sales and EPS guidance for fiscal 2023. Although it was a success, revenue was down about 7% compared to the period in the same period. last year. .
