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ArkHouse Management, a real estate-focused investment firm along with Brigade Capital Management, announced on Sunday a revised version of its offer to buy Macy’s. Previously derided as too low, the companies are now offering to buy Macy’s shares they don’t already own for $24 a share, a 14% increase from their previous bid of $21.
The new offer totals $6.6 billion and represents a roughly 33% premium to Macy’s closing price of $18.01 on Friday.
In a statement about the proposal, Ark House said: This will provide Macy’s shareholders with significant value and immediate liquidity. ”
Macy’s responded with a separate statement, indicating the company’s intention to thoroughly evaluate the latest offer.
Last December, the investment firm initially offered $21 a share to acquire Macy’s outstanding stock, but the bid was rejected, citing concerns about financing and valuation by department store executives.
Like many traditional department stores, Macy’s has faced challenges from competition from younger online rivals and smaller brick-and-mortar competitors. This predicament has given Arkhouse and Brigade an opportunity to consider selling Macy’s.
In addition, Arkhouse Management last month gave Macy’s a board seat by nominating nine director candidates, including individuals with expertise in retail, real estate, and capital markets, to the department store’s 14-member board of directors. posed a challenge.
Last week, Macy’s announced plans to close 150 major stores over the next three years as part of a broader restructuring effort aimed at ensuring relevance in today’s market. The company plans to close its first 50 stores by the end of fiscal 2024. In a statement about the changes, CEO Tony Spring said: ”
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