Arkhouse Management and Brigade Capital are raising their offer to purchase Macy’s by almost $1 billion, in hopes of taking the department-store chain private.
In a press release Sunday, the investor group said it was increasing its bid to amass Macy’s
M,
+3.27%
to $24 a share, or about $6.6 billion, up from a bid of $21 a share, or about $5.8 billion, that Macy’s board rejected in January, saying on the time that it lacked “compelling value.”
Macy’s stock rose 14% to $20.50 in premarket trade.
Macy’s shares are down about 10% yr so far, and have fallen 21% over the past 12 months, in comparison with the S&P 500’s
SPX
8% gain in 2024 and 27% gain over the past yr.
Arkhouse and Brigade said their recent offer is a 51.3% premium to Macy’s share price as of Nov. 30, 2023, once they submitted their original proposal. They usually noted it’s a 33% premium to Macy’s stock price as of Friday, when it closed at $18.01 a share.
“We remain frustrated by the delay tactics adopted by Macy’s Board of Directors and its continued refusal to have interaction with our credible buyer group,” Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said in a press release. “Nonetheless, we’re steadfast in our commitment to execute this transaction.”
In a press release Sunday, Macy’s confirmed it had received the offer and said it could “rigorously review and evaluate the most recent proposal consistent with the board’s fiduciary duties and in consultation with its financial and legal advisors.” A Macy’s spokesperson said there was no additional comment.
Macy’s announced a restructuring plan last week that features closing 150 stores, including its iconic flagship store in downtown San Francisco. Individually, the corporate also announced fourth-quarter earnings that beat expectations.
“While the restructuring plan Macy’s unveiled last week didn’t encourage investors, the fourth-quarter earnings and year-end results have given us further confidence within the long-term prospects of the corporate if redirected as a non-public company,” Kahane and Blackwell said Sunday.